Southwestern

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Business Office

Corporate Card Procedures

Welcome to Southwestern University’s Corporate Card program. We hope you find the Corporate Card a convenient and useful tool in conducting business for the University.

Corporate Card Procedures

Welcome to Southwestern University’s Corporate Card program. We hope you find the Corporate Card a convenient and useful tool in conducting business for the University.

These procedures will provide you with the basic information for using the Corporate Card, including an overview of the process using the cards, documentation required for properly conducting Purchasing and Travel transactions, reviewing and approving your card statement using the Internet and reallocating transactions to departments and object codes for general ledger accounting.

If you have questions, please contact Pam Leatherwood at 863-1930 or leatherp@southwestern.edu

Purpose

The purpose for Southwestern University Corporate Card is to provide employees with an efficient system for purchasing and travel. The Corporate Card is a specialized MasterCard administered by JPMorganChase. Purchases made with the cards will be charged directly the account specified in Smartdata, JP Morgan’s online reporting platform, and will be reported on the monthly general ledger.

The primary benefits of using the Corporate Card for departments are:

  • Acceptance by any merchant who accepts MasterCard
  • More timely purchase and receipt of goods
  • Convenience of purchasing via the internet or telephone
  • Increased information about purchasing transactions captured on Smartdata
  • Reduced paperwork
  • Earns a higher rebate amount to the University

The Corporate Card program may be used in place of the traditional requisition process of purchase order or check requisition and accounts payable check

Key Contacts

Contact Southwestern University’s Corporate Card Administrator—Pam Leatherwood in the Business Office at 863-1930 or at leatherp@southwestern.edu, if you have any questions

New Corporate Cards

Print the Cardholder Enrollment Form (Attachment #1 & #2). The completed and signed forms can be campus mailed to the Corporate Card Administrator in the Business Office.

Lost or Stolen Card

If you lose your Corporate Card immediately notify JPMorganChase at 1-800-890-0669.  Also notify the Corporate Card Administrator as soon as possible.  The lost/stolen card will be immediately deactivated.

Definitions

Supplier - A company from which a Cardholder is purchasing goods under the provisions of these procedures.

Cardholder - Personnel who have been issued credit cards and are authorized to make purchases in accordance with these procedures.

Corporate Card Administrator - The person in the Southwestern University Business Office responsible for program details, including Cardholder inquiries.

Smartdata - JPMorganChase’s online reporting platform providing online review and approval of cardholder transactions. The system will list all transactions for the current cycle (month), requiring review by the cardholder. Additionally, historic transactions are maintained on the system for a number of years.

Purchasing Limits - The limitation of purchasing authority delegated to a Cardholder. Most purchases at Southwestern have a maximum purchasing dollar limit of $1,000 per single purchase and $10,000 for total monthly purchases. These limits may be customized for each card based on the cardholder’s authority and needs. These controls are built into the Corporate Card electronic system, rejecting attempted transactions which exceed these limits. In addition, expenses should not exceed departmental budget limitations.

Travel Limits - The limitation of travel authority delegated to a Cardholder. Most travel expenses have a maximum purchasing dollar limit of $2,000 per single purchase and $10,000 for total monthly. These limits may be customized for each card based on the cardholder’s authority and needs. These controls are built into the Corporate Card electronic system, rejecting attempted transactions which exceed these limits. In addition, expenses should not exceed departmental budget limitations.

OVERVIEW OF THE CORPORATE CARD PROCESS

Using the Corporate Card is similar to using a personal credit card. Remember that transactions over the limit set on your card cannot be made with your Corporate Card.

RECEIVING A CORPORATE CARD

Department Chairs will designate new Cardholders by completing a Corporate Card Cardholder Enrollment Form (Attachment #1).

The new Cardholder should read these procedures and will be required to sign the Corporate Card Employee Agreement (Attachment 2) indicating that the Cardholder understands the procedures and their responsibilities.

The Corporate Cardholder Enrollment Form should be sent to the Corporate Card Administrator in the Business Office.

The Corporate Card Administrator will maintain records of Corporate Card requests, dollar limits, Cardholder transfers, and lost/stolen/destroyed card information. Approved requests will be processed and a Corporate Card issued to the cardholder. Upon receiving the Corporate Card, the cardholder will be contacted by the Corporate Card Administrator for training.

AUTHORIZED CORPORATE CARD USE

The Corporate Card that the Cardholder receives has his/her name embossed on it and shall only be used by the Cardholder. No other person is authorized to use your card. The Cardholder may initiate transactions on behalf of others in his/her department; however, the Cardholder is responsible for all use of his/her card.

It is the Cardholder’s responsibility to be aware of his/her own department rules and guidelines regarding purchases and make only appropriate purchases.

Travel Limits

The Corporate Card may be used for a majority of transactions arising in the normal course of business travel. The following limitations exist on the Corporate Card:

  • The total amount of a transaction shall not exceed the single purchase limit of $2,000.
  • A purchase shall not be split into multiple transactions to stay within the single purchase limit.
  • The Cardholder shall inform the supplier that the expenses are not subject to sales tax.

Purchasing Limits

The Corporate Card may be used for a majority of transactions arising in the normal course of business. The following limitations exist on the use of the Corporate Card:

  • The total amount of a transaction shall not exceed the single purchase limit of $1,000.
  • A purchase should not be split into multiple transactions to stay within the single purchase limit.
  • A purchase order must be used for all purchases over $1,000.
  • The Cardholder shall inform the supplier that the expenses are not subject to sales tax.
  • The Corporate Card may be used to purchase computer hardware/software, but ITS approval is required prior to the purchase.

UNAUTHORIZED CORPORATE CARD USE

The Corporate Card SHALL NOT BE USED for the following:

  • Personal purchases
  • Non-University purchases
  • Contract Services (Due to legal concerns and the complexity of IRS regulations regarding independent contractors, these purchases should be processed using Purchase Requisitions).  

A Cardholder making unauthorized purchases or carelessly using the Corporate Card may be liable for the total dollar amount of such unauthorized purchases plus any administrative fees charged by JPMorganChase in connection with the misuse. Inappropriate or fraudulent use of the Corporate Card by the Cardholder also will be subject to disciplinary action up to and including termination of employment.

USING YOUR CORPORATE CARD

As always, the cardholder should use a supplier that provides the best value to Southwestern University.

The following checklist summarizes the purchasing process the Cardholder will use when making a purchase:

Best Practices – Non-Travel Purchases

  • The value of items purchased must not exceed $1,000 on a single transaction
  • Advance approval from ITS is required when purchasing technology-related goods or services
  • Solicit from an adequate number of suppliers to assure the best price, quality, and delivery. Select the vendor who provides the best value to Southwestern University
  • Confirm that the supplier accepts MasterCard.
  • Inform the supplier that the purchase is for Southwestern University and is exempt from sales tax
  • Direct the supplier to include the following information on the shipping label and packing list:
    • Cardholder’s name and telephone number
    • Complete delivery address
    • The words “Corporate Card Purchase”
    • The supplier’s order number
  • Request that the order be sent to the Cardholder. This will ensure that the documents necessary for record keeping are readily available to the Cardholder.

Best Practices – Travel Purchases

  • The travel expense must not exceed $2,000 on a single transaction
  • Solicit from an adequate number of suppliers to assure the best price (i.e. airfares). Select the vendor who provides the best value to Southwestern University.
  • Confirm that the supplier accepts MasterCard

CARDHOLDER RECORD KEEPING

Purchases with the Corporate Card can be made over the counter or via telephone or the Internet.

Appropriate documentation supporting the expense must be obtained by the Cardholder for all corporate card transactions and filed with your statement at the end of the month.

Complete the “no receipt” form for transactions without receipts. This form must be signed by you and your department chair or supervisor. Your explanation should include a description of the expense, date of purchase, supplier’s name and reason for the lack of supporting documentation.

File your receipts in your Monthly Receipts Envelope provided by the Business Office. Envelopes can be obtained from the Corporate Card Administrator.

If you have charges during the month you will receive an email from JPMorgan Chase notifying you that your monthly statement is available.  If you haven’t already done so, log into Smartdata and use your receipts to verify the correctness of the transaction date, amount, vendor name, etc, including the correct account number for coding.

Once you have reviewed all of your transactions for the month, print the monthly statement and sign and date it.  Enclose it with the receipts in the Monthly Receipts Envelope.  Complete the information requested on the front of the Monthly Receipts Envelope, and forward the envelope to the Business Office.

It is important for you to print and sign the monthly statement as this document is our permanent record of authorization for your transactions.

Do not enclose cash or checks in your Monthly Receipts Envelope.  You may send checks to the Corporate Card Administrator via campus mail in a separate envelope.  Cash should not be sent in campus mail.  Please bring it to the Business Office in person.

The Business Office will collect, review and file your documentation each month. We will maintain record archives in accordance with Southwestern’s Record Retention policy. Therefore, it is not necessary for you to keep copies of your receipts. Please note that University Policy requires you to submit receipts for corporate card transactions to the Business Office each month. These receipts should be sent to the Business Office as soon as possible after the end of the month. If you fail to submit the required documentation by the last day of the month following the current billing cycle, your Corporate Card will be de-activated until the situation is resolved.

Card Security

It is the Cardholder’s responsibility to safeguard the Corporate Card and account number to the same degree that a Cardholder safeguards his/her personal credit information. The Cardholder must not allow anyone to use his/her credit card or account number. A violation of this trust will result in the Cardholder having his/her card privileges suspended.

If your card is lost or stolen, please immediately notify JPMorganChase at 1-800-890-0669.  Also notify the Corporate Card Administrator. The lost/stolen card will be immediately deactivated.

A new Corporate Card will be promptly issued to the Cardholder. A card that is subsequently found by the Cardholder after being reported lost or stolen should be cut in half and forwarded to the Corporate Card Administrator, since deactivation of the card is an irreversible action.

CARD EXPIRATION AND EMPLOYMENT TERMINATION

(including Leave of Absence and Retirement)

A Corporate Card typically expires after two years. The Cardholder will receive a new card before the expiration date of the old card. Upon receipt of the new card the old card should be destroyed to ensure security of the card and account number.

Before leaving Southwestern University, including employees on a Leave of Absence and Retirement, the Cardholder shall turn in the Corporate Card to the Corporate Card Administrator in the Business Office. The Corporate Card Administrator will review the Cardholder’s Electronic Statement to ensure all transactions have been reviewed/approved. The Corporate Card Administrator will deactivate the card and destroy the card.

Employees who transfer between University departments may keep their Corporate Card if their new supervisor wants them to have one. The new supervisor shall e-mail the Corporate Card Administrator asking that the default department number be changed for that card.

YEAR END CUTOFF AND ACCOUNTING

The monthly billing cycle for Corporate Card transactions runs from the first of the month through the last day of the month. Charges posted to the Smartdata system during the billing cycle will be posted to that month’s general ledger activity at the beginning of the following month. For example, the billing cycle running from July 1 through July 31 will be posted to the general ledger on or about August 10.

It is important to note Southwestern’s fiscal year end cutoff policy for Corporate Card transactions. Transactions posted to Smartdata during the billing cycle ending June 30 will be posted to the current fiscal year’s general ledger. Transactions posted to Smart Data starting July 1 will be deferred and recorded on August 10th as new fiscal year transactions.