Procurement Card Guidance 2022

Procurement Card (P-Card) Reference Guide

J.P. Morgan Chase Visa Procurement Card Program

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Cardholder’s Importance Highlights

Authorized Procurements Purchasing Restrictions P-Card Activation Process

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Cardholder Self-Registration for PaymentNet How to Use P-Card to Make Purchases? • Before Placing Order

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• Placing Order

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• Follow-up After Order Placed

M aking Returns O btaining Credits

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M onthly Reconciliation F MS Certification Basics M aintaining Documents

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A udit Requirements

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A udit Conclusions and Corrective Actions

How to Report a Lost/Stolen Card

Liability

Acknowledgement Summary

Questions

JPMorgan Chase Visa Procurement Card (P-Card) Program • Ideal for small dollar purchases (less than $2,500). • Increase departmental efficiencies and decrease administrative costs associated with processing of small dollar amount purchase orders via credit card vs state check. • To be used for purchases on State or IFR accounts only. • Not for Business Travel use. • Not for Personal use. • More time efficient than under traditional procurement process. Cardholder’s Importance Highlights • Always stay within the established limits of the P-Card. Funds must be available at the time of purchase. • Single transaction cannot exceed $2,500. Never “split order” (put in multiple small purchases with the same vendor to make a complete transaction that over $2,500). • Procurement and Payable agents may execute transactions over $2,500 with proper documentation within the term of cardholder’s individual credit limits and settings and may be subject to additional approval when necessary. • P-Cardholder is liable and responsible for all purchases made on your P-Card. • Use the P-Card for official State purposes only. Improper use may be subject to disciplinary action. • Keep P-Card and account information in a secure place. • Do not give the P-Card to anyone to use (even the same department). • Do not share any passwords related to the P-Card or any online certification. • Items should be purchased first from Preferred Sources, followed by NYS Contract vendors, and then MWBE vendors. • If the item is not available from any of the above, P-Cardholder must be able to substantiate reasonableness of price. • Reconcile, certify, and submit monthly statements to your immediate supervisor for review and approval no later than 15-day of the month closing the monthly billing cycle and submit the approved cardholder statement to Accounts Payable within 5 business days afterwards. Authorized Procurements include • Purchases up to $2,500 maximum (or lesser amount assigned by departmental manager) • Always validate you are not paying NYS Sales Tax on purchases. • Must maintain appropriate documentation as outlined below.

• Subscriptions • Memberships • Conference registrations • Preferred Sourcespurchases

• NYS Contract purchases • MWBE Vendor purchases • Books • Supplies and materials • Equipment up to $1,500 [1] (except computer equipment – see restrictions)

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• Film processing • Printing

• Repairs of equipment not covered by maintenance agreement • Shipping Charges (up to 10% over single per-transaction limit) • Others, please contact Business Office

[1] “Property of …” stickers required. To ensure that both the property control manager is aware of any pending receipts of equipment procure through the use of the procurement card, the cardholder will send an e-mail to the property control manager, indicating what piece of equipment (an item with a durable life span of over 1 year) has been bought, the name of the vendor, and the anticipated receiving date, along with any other identifying number (i.e., confirmation number). A copy of the confirmation, if available, should be sent. Purchasing Restrictions Restricted items are either strictly prohibited, such as personal use, or require pre-approval, such as computer-related equipment or specialty gases that need environmental health and safety notification. Restricted items include but not limited to the following, • Computer-related equipment (including printers) • Equipment (other than computer) exceeding $1,500 • Personal use not for State business • Alcoholic beverages • Orders exceeding $2,500 (or cardholder limit) • Employment advertising • Gasoline • Medical services • Gift certificates / cards or any other cash equivalent • Flowers, personal gifts, decorations, greetings cards, party supplies, etc. • Breakroom supplies (e.g., cutlery, creamer, etc.) • Saving bonds • Cash advances • Cash back (rebates) on purchases • Cash refunds on returns • Controlled substances (e.g., narcotics and prescription drugs) • Live animals • Radioactive materials • Specialty gases / cylinder rentals • Financial and / or non-financial agreements requiring signature or representative of College Contracted services from an individual. • Leases, rentals • Insurance • Travel / entrainment (e.g., airfare, car rental, lodging and reservations, restaurants, alcohol, etc.) • Others, please contact Business Office

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P-Card Activation Process • Sign at the back of your new P-Card once received • Call 1-866-602-8170 to activate OR • Go to ccportal.jpmorgan.com to activate • If Access Code 1 is needed during any point of the card activation, the cardholder will use the Last 4 digits of the SUNY ID. SUNY ID can be found in the Identity Access Management BI dashboard or by contacting your campus Human Resources team.

• If Access Code 2 is needed during any point of the card activation, please use the First 4 digits of billing zip code. Billing zip code is 10036.

Cardholder Self-Registration for PaymentNet (to access of monthly statements) • Go to www.paymentnet.jpmorgan.com • From the Log In screen, click Create your JPMorgan Commercial Card Online Account link • Enter the 16-digit account number in the JPMorgan Commercial Card Number field • Enter the last 4 digits of cardholder SUNY ID (used for card conversion) • Click Next. Cardholder Identity is verified and the “Online Account Registration – Create User ID” screen is displayed. • Once the cardholder has created a new User ID, a temporary password will be sent to the email address used for conversion. If the email does not arrive in a few minutes, please contact JPMorgan Customer Service by calling the number at the back of your card. NOTE 1: All cardholder User IDs must be unique University-wide throughout a specific credit card program. If the User ID is being used in Payment Net, the system will prompt you to choose a different User ID. NOTE 2: If System prompt you to enter your Organization ID , i.e., NYSPURCH

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How to use P-Card to make purchases? Before placing order

• Make sure funds are available in the account (usually default) that you intend to make payment from. Use the SUNY SMRT system to see available funds in particular accounts. To ensure departments to not exceed their allocation in any fiscal year, the program administrator may limit use of the procurement card during the 12 th month of the SUNY Fiscal Year (June of each year). • Locate item you are purchasing. You should utilize if possible: 1 st  Preferred Source Vendors  Corcraft, https://corcraft.org  NYSPSP, https://www.nyspsp.org  NYSID, https://www.nysid.org 2 nd  NYS Contracts, http://www.ogs.ny.gov/Purchase/Search/default.asp 3 rd  MWBE Vendors, https://ny.newnycontracts.com/FrontEnd/VendorSearchPublic.asp?TN=ny&XID=4687 • Keep a record of price reasonableness to justify vendor if not using one of the above sources. Include all vendor quotes as backup. • Inquire if the vendor accepts VISA prior to the purchase being made. • Inquire if the vendor has our Tax-Exempt status on record. Procurement of good and / or services in NYS are exempt from sales and use taxes. Our tax exempt # is 14740026K . If needed, please contact Business Office for a copy of Tax-Exempt documentation. Placing order • Orders may be placed via phone, fax (be sure account information going to an individual not a general fax number), on-line, or in person. Be prepared to provide the following information to the vendor:  Cardholder name and account number  Account expiration date  3 digits security number at the back of the card  Ship to address, including “VISA” and cardholder’s name and room number, should appear on the outside of the package to assist delivery. • Orders typically require the use of an order form. IF an order form is not provided by the vendor, then use a Purchase Requisition to document your purchase. • On-line orders should be printed before being submitted. Do not rely on confirmations after the orders have been place. All retail purchases require a comprehensive, itemized receipt. • To ensure proper utilization of the P-Card, all transactions must clearly identify the items being bought, the quantity, where and to whom they are being delivered (specific room, and individual). Also, transactions must indicate the business purpose of the purchase. If the order is to be delivered to a place other than the College, for e.g., a patient’s residents, an explanation / justification must be attached to the transaction. • Cardholders should be prepared to obtain the following information form the vendor and note in the Procurement Record:  Name of customer service representative receiving the order if placed by phone.  Cost for each item including any / all shipping charges. If the vendor is unable to provide an exact shipping charge, please obtain an estimate.  Anticipated delivery date that product will arrive, or service will be completed.

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 Itemized receipt for in-person purchases and / or packing slip for items shopped or services rendered. Follow-up after order placed • Cardholders should keep all outstanding transactions in a pending folder until the transaction in complete. If a confirmation of the order is provided by the vendor, the cardholder should maintain it for backup and expediting purposes. • Vendors are not authorized to process an order for payment against P-Card accounts until goods are in transit and/or services are completed. Pre-payments are not allowed. Typically, once a product or service is processed, the charges will appear in the cardholder’s log list (VI03) located in the SUNY Central system within 24-48 hours of being received at VISA. Cardholders may review transaction logs in order to charge them to accounts other than issued SUNY default accounts (where authorized), resolve discrepancies with vendors, and/or detect any suspected fraudulent activity. • Once product is delivered to and received by the cardholder, the packing slip should be carefully reviewed to ensure proper goods were received in good condition. If the order is received complete, the cardholder should match the packing slip to the outstanding order form and maintain it until a corresponding VISA statement is received. If the order is received in more than one shipment, the cardholder should keep a copy of the order form as “open” with items noted as backordered. For each delivery, the corresponding packing slip should be attached to a copy of the order form. Once all items have been received, the order is considered complete. • During the monthly certification process, the cardholder must submit all completed transaction documents to their supervisor for review and approval. The supervisor must initial each monthly documentation (orders, receiving slips, certifications), thereafter, must be submitted to the Accounts Payable office. It is strongly suggested that copies be retained in the cardholder’s department for audit purpose. Making returns • Item(s) purchased using P-Card needed to return due to damage upon arrival, wrong item(s) shipped, etc. • A cardholder should follow the procedures below for returning the damaged item(s):  Call the vendor to alert them of the damage immediately (many vendors will not accept returns after 72 hours from receipt)  Be prepared to provide the following information to the vendor: 1. Order number typically located on the packing slip 2. Cardholder name and account number 3. Telephone number • 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. • When product is returned due to damage from shipping or manufacturer defect, the cardholder is not responsible for paying return shipping charges. The vendor must issue a “call tag” or pick up the item(s) at the vendor’s expense. Once the item(s) has been received by the vendor, a full credit for that item and its original shipping cost must be issued to the original credit card account. Cash refunds are not allowed . • If a replacement item is requested of the vendor, a new charge with all new shipping costs (if applicable) needs to be submitted through VISA.

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• A cardholder may opt to return an item that is not what was expected or is no longer needed. In this situation, the above process applies with the exception of return shipping charges. The cardholder will now be responsible for paying shipping charges to return the item; 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 weigh the cost of the entire return against 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. Obtaining credits Regardless of the circumstance for requesting a credit (returns, sales tax, incorrect/duplicate billings, etc.), the cardholder should use a "Credit Pending Form" as backup documentation for audit purposes. The form should include the following information: • Date • Vendor name • Name of person handling the credit • Brief explanation of problem and expected outcome. If the cardholder is unable to resolve the situation within a reasonable timeframe (minimum 1 full billing cycle), please contact the Business Office for assistance in obtaining credit due. Monthly Reconciliation Reconciling charges- Each cardholder is responsible to reconcile their card promptly each month. A reconciliation email will be sent around the 8 th of each month from the Program Administrator. This email will contain the billing cycle date you must use to reconcile your charges as well as the deadline date for your reconciliation. You will need to print out your Chase statement every month for your records and for submission with your reconciliation documents to the Program Administrator. NOTE: Your Chase monthly statement will need to be reviewed and signed by your Supervisor . Please send the original signed statement with all you purchase receipts, supporting documents to Account Payable office no later than 20 th of each month . FMS Certification Basics Once you start using your P-Card, you will need to reconcile your charges and/or credits monthly. To begin the process, print out and review your JPMorgan Chase statement, then proceed to the following: • Log into the Finance & Management System (FMS) . • Click on Cardholder Statement via the Finance drop-down menu. • You can select any billing cycle on record via the Statement Cycle drop-down menu. • Select the billing cycle you want to reconcile. • Click on Edit for the transaction you wish to review. • Review the Transaction Details . • Click on Edit Funding in the Funding Information section. • Review the Funding Line information. Adjust the Account Number , Sub Object Code , Fiscal Year , and Amount as needed. If you have any questions on coding, contact the

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Business Office. Enter a brief explanation of your purchase in the Funding Description section. • If you need to split payments between two or more accounts , enter the correct account number, sub object code, fiscal year, the amount to come out of one account, and a description, then click + Save/Add Next Account . • Once you have verified that the coding is correct, click Save & Return to get back to the Transaction Details page. • Verify that the funding is correct for the transaction, then click Save . • Once all of your transactions have been edited to reflect the correct data, click ✓ Certify . • After clicked ✓ Certify , read the disclaimer , enter comments in the Certification Reason/Comments section, then click ✓ Certify . Maintaining documents Cardholders are required to keep complete procurement records for every transaction made against the VISA account, debit or credit, from beginning to end for a total of seven fiscal years. This includes order forms, packing slips, invoices (if provided), event information (if applicable) and credit pending forms. It is important that cardholders maintain their records in an accurate and organized manner and be available at any time for post-procurement audit by the New York State Office of the State Comptroller, SUNY System Administration or SUNY College of Optometry Business Office. The billing cycle for P-Card runs from the 7 th of a month through the 6 th of the following month (e.g., January 7 through February 6 is the January billing cycle). Cardholders should maintain all open orders and respective documents in a separate folder to be matched to corresponding VISA statements at the end of each billing cycle. Once reconciliation and certification of these transactions have been completed, the statement with its respective backup documentation should be placed in a "closed" folder organized by billing cycle. Audit Requirements Business Office as well as the NYS Office of the State Comptroller or SUNY System Administration may elect to audit any, and all P-Card accounts at any time. Typically, the following information is reviewed during an audit: • Paperwork is maintained properly (i.e., original receipts with respective statements, maintenance in a secure location, confidentiality upheld, etc.) and reflects a complete procurement record, beginning to end. • Types of purchases made are within program guidelines and NYS Finance Laws (i.e., no split ordering, restricted items should be explained, use of the card should be for official State use with appropriate backup provided when applicable, no travel expenses, etc.) For non-typical purchases, provide additional documentation/explanation, as appropriate. • Items purchased are from permissible sources and/or Preferred Sources, NYS contracts, M/WBEs are utilized whenever possible. • Returns are handled properly (i.e., call tags and RMA numbers, proper use of Credit Pending Form, credits received on proper account, etc.) • Incorrect billings are handled properly (i.e., sales tax charges, incorrectly charged items, shipping charges, proper use of Credit Pending Form, credits received on proper account, etc.) • Charges made to account are for product received and/or service rendered (no

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prepayments) • Documentation for specific events related to the purchase is maintained with the order form. • Pricing quoted is considered fair and reasonable from reliable/responsible vendors and is billed as expected. • All levels of authorization are being adhered to. • Based on the results of an individual audit, a follow-up audit may be required at a future date. Audit Conclusions and Corrective Actions Following the completion of an internal audit of a VISA P-Card account, the cardholder and respective department manager will be debriefed of the outcome and receive copies of audit reports. These audit reports will include any discrepancies that were noted during the audit as well as suggestions for improvements. The following outcomes may be utilized for failure to follow the VISA Policies and Procedures: • Purchases made, that are deemed as inappropriate state expenditures, are required to reimburse to the respective State account using non-State funds. The funds may include appropriate grant funds, other external funding sources or reimbursement by the individual cardholder. Documentation indicating such reimbursement must be forwarded to the Program Administrator immediately. • Cardholders who are determined to not be adequately following these procedures may be requested to receive additional training and additional oversight by their department managers and/or program administrator. Non-compliance with procedures may result in revocation of the P-card. • Intentional misuse of the card will result in revocation of P-Card privileges and may result in disciplinary action and/or requirement for reimbursement of charges to NYS. How to report a lost/stolen Card Any lost or stolen P-Card must be reported immediately to JPMorgan Chase at 1-800-316-6056. The cardholder should be prepared to give their name exactly as it appears on the face of the card, the account number, the card’s expiration date, and a brief explanation surrounding the loss. Cardholders must promptly report lost or stolen account numbers and cards to JPMorgan Chase and notify the Program Administrator, Ting via email yleeshue@sunyopt.edu or call (212) 938-5945. Liability New York State will be initially liable for all charges to the P-Card except for fraudulent use of the card by a supplier and/or an employee, those in excess of the single per-transaction limits, and any other limits imposed by participating State agencies. Cardholders themselves will be responsible to reimburse the State of New York for any charges incurred as a result of misuse or fraudulent use of the card.

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Acknowledgement Summary Your use of the NYS JPMorgan Chase Procurement Card is subject to the following terms and conditions: 1. You are being entrusted with a valuable tool – a NYS JPMorgan Chase Procurement Card – which is to be used for State business or official government purchases of services and commodities. Because you will be making a financial commitment on behalf of the State University, you must strive to obtain best value for the University by following established travel guideline as appropriate. 2. All charges made to your Procurement Card will be posted to a central bill by JPMorgan Chase and sent directly to the Office of Business Affairs for payment. You will not receive a bill from JPMorgan Chase. All transactions charged to Procurement Card must be reconciled in the FMS each month. Failure to reconcile transactions in a timely manner may result in revocation of your Procurement Card. 3. You may only use the procurement card for authorized State business or official government transactions. You may not use this credit card for personal charges. Your agency and the Office of the State Comptroller will audit the use of your card and take appropriate action on any discrepancies or unauthorized charges. Any evidence that your card has been used fraudulently will require an investigation, after which disciplinary action may result. Fraudulent use may also result in criminal prosecution. 4. You must follow the policies and procedures established by the State University of New York as well as New York State for the use of the Procurement Card. Failure to do so may result in revocation of your user privileges or other disciplinary action, which could include termination of employment. 5. Your Agency will establish spending limits for cardholders. You are responsible for knowing your limits and not exceeding them without approval. In addition, certain purchases from merchants or vendors outside the scope of authorized program guideline may be blocked by the card. 6. NYS JPMorgan Chase Procurement Cards are the property of New York State. You must destroy and cancel your card with JPMorgan Chase immediately upon request or upon termination of employment or retirement. Should there be any change in your employment status, you must return this card and arrange to have a new card issued, if necessary. 7. If your Procurement Card is lost or stolen, you must notify your agency’s Card Program Administrator and JPMorgan Chase immediately. Review of recent transactions within the last 30 days is required to identify any fraudulent charges and appropriate action can be taken. 8. You must comply with any changes to the terms and conditions or policies and procedures concerning use of this credit card. 9. You must certify, by signing your name below, that you are not listed on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons (SDN) list. Any other questions or concerns Please contact Business Office, Ting via email yleeshue@sunyopt.edu or call (212) 938-5945.

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