Business, Management, and Financial

Credit Card Usage

Colby Community College is participating in the State of Kansas and Elan Financial Services Purchasing Program. The purpose of the State of Kansas Procurement Card Program is to establish a more efficient, cost-effective method of purchasing and paying for small dollar (under $3,000) transactions within established usage limits.

The Business Procurement Cards (Visa) can be used for in-store purchases as well as mail, internet, phone, or fax orders. The program is designed to ease the ordering & payment process by reducing purchase orders, payment vouchers, and the use of personal funds reimbursed by payment vouchers.

This manual provides the guidelines under which you may use your procurement card. Please read it carefully. Your signature on the Business Procurement Card Cardholder Agreement indicates that you understand the intent of the program and agree to adhere to the established guidelines. You will be issued your procurement card after the Business Affairs Office receives an approved VISA account action request form, required training is completed, and the cardholder has signed the VISA Card cardholder agreement form.

General Guidelines

The Business Procurement Card is an additional tool to be used by College employees for the purchasing of commodities, services and travel related expenses, similar to an agency purchase order. All policies and procedures regarding the spending and payment of State and Grant funds still apply. Cards are issued to a specific person to insure responsibility of the use of the card.

It is likely that any merchant you currently utilize as a source for commodities will accept this card. However, due to certain restrictions, some attempts to purchase goods from a merchant through the use of the VISA Card may be declined. If you are declined and feel the decline should not have occurred, email the VISA Card Administrator at patty.mead@colbycc.edu.

Each card has been assigned an expenditure dollar limit applicable for a 30-day billing cycle. During this cycle, merchants are paid by Adams Bank within three days of the business transaction. It is imperative that the merchants NOT invoice the College in addition to the detailed charge receipt, as an invoice could result in duplicate payment. Additionally, when making these purchases, be sure to remind the vendor of the College's tax-exempt status when making a purchase.

For your continued use of the VISA Card as well as the overall success of the program please remember that the Procurement Card is NOT intended to avoid or bypass appropriate procurement or payment procedures. Rather, the procurement card complements the existing processes available. It should not be used for personal use and charges to the card cannot be used as a pass-through of personal funds.

The cards are further restricted by the individual transaction card limit, including shipping and handling.

You are responsible for the security of this card and the transactions made against it.  The card is issued in your name and any purchases made against the card will be your responsibility. Use of the card for purchases not in accordance with guidelines established may result in personal liability. be your responsibility.  Use of the card   for   purchases not in accordance with guidelines established may result in personal liability.

Remember that you are committing College funds each time you use the procurement card. This is a responsibility that cannot be taken lightly.

 

Card Use Procedures

Types of Cards

Standard VISA Card – Use is for purchase of commodities made in accordance with approved CCC purchasing policies and procedures. Transaction total is limited to $3,000 per purchase without additional approval and the standard credit limit varies.

How to Obtain a Card

After you have read and understand the procedures in this manual, your department may request a new card be issued to you by forwarding the Credit Card Request Form (Appendix) to patty.mead@colbycc.edu. The VISA Card Coordinator will assist with gaining access to the applicable training for the VISA requested. Once the VISA Credit Card request form has been received and training has been completed, the appropriate VISA Card will be requested on your behalf.

The VISA Coordinator will notify you, via email, when your new card is ready to be picked up in Thomas Hall. At that time, you will be asked to read and acknowledge your understanding of your role and responsibility. 

When you receive your card, always keep it in a secure place. Although the card is issued in your name it is the property of the Colby Community College and is only to be used for College purchases as defined in this manual.

How to Cancel a Card

VISA cards are to be canceled immediately if a card-holder, issued in a card-holder's name, terminates employment. The cardholder’s final paycheck may be withheld until the card is returned.

The process for canceling a procurement card begins with the return of the card to HR or Patty Mead.

Card Renewal

A renewal card will automatically be mailed to the VISA Card Coordinator. The cards are typically mailed out from the Bank around the middle of the month that the card expires in. You will be notified when the card has arrived from the bank and is available for pick-up.

Failure to Use Card

An unused card is considered a security risk. If the VISA is not used on a regular basis a report is generated by the Bank notifying the VISA Card Coordinator of the inactive card. After six months of inactivity the card will automatically be cancelled by the bank. Please see the cardholder agreement that was included with your card.

How to Report a Lost or Stolen Card

If a procurement card is lost or stolen, immediately contact the VISA Card Coordinator to have your card closed and re-issued.

Procurement Card Security

Only the authorized cardholder department may use the card. Cards and card numbers must be safeguarded against use by unauthorized individuals in the same manner you would secure your personal credit card.

Internet Security

Suggested best practices for shopping on the Internet are listed below. Be aware that an outside party could gain access to your VISA Card account number if a vendor's Internet site is not secure.

1. Only use your card in a secure environment, i.e., the location/address box on your browser starts with "https://".
2. Use sites that include a BBB (Better Business Bureau) Accredited Business seal. The seal should link to a page confirming that the business is BBB accredited. Be cautious if the seal is not linked to a BBB page confirming accredited business status. It could be a sign of unauthorized use of the
3. If you are not familiar with an online merchant, verify its reliability with outside organizations, such as the Better Business Bureau http://www.bbb.org/.
4. Know who you are doing business with before placing an order. Use Web sites that provide clear contact information (phone number, address in the real world, customer service contact) for the company, as well as warranty, return and refund
5. If an online purchasing website asks you to create an account with a password, protect that password.
   • Use a different password for each website that you utilize. (Do not use the same password for more than one website.) This procedure will help protect your VISA Card, if the password for a specific website is
   • Change passwords for online purchasing websites on a regular
6. Do not provide personal information, such as Social Security, Bank account or personal phone numbers or your home
7. A site should have a privacy policy explaining how the merchant will protect the information you submit when making a purchase. If you cannot find that policy, request that
8. Understand prices, shipping and handling charges, the terms of any product or service guarantees and the expected delivery
9. Check your order for keystroke errors to avoid ordering the wrong item or
10. Always print and retain a copy of each purchase order with a confirmation number and pricing information attached. It’s also a good idea to print the “address” (Uniform Resource Locator) of the company site that you are doing business

 

Business Procurement Card Holder Responsibilities

Receipt of Goods and Materials

The cardholder is responsible for ensuring receipt of goods and materials and will follow-up with the vendor to resolve any delivery problems, discrepancies and damaged goods.

For telephone or catalog orders, make sure complete shipping address and instructions are given along with your name, department name, complete street address, room number, city, state, and zip.  If goods or materials are ordered by phone, explain we are a tax-exempt organization and ask the vendor to include a detailed sales receipt in the package. Save the credit card receipt and shipping documentation.

Record Keeping and Documentation

Record keeping will be essential to ensure the success of the program. Standard payment policies require retention of receipts and other documentation.   As with any credit/charge card, you   must retain sales slips, cash register receipts, invoices, order forms and receiving documents. All of these documents should be submitted to the card administrator with your monthly statement.

Approval Process

Itemized receipts must be forwarded to the card administrator for review and approval. Please note: Departmental approval and document routing processes may vary between departments.

Declined Purchases

Cardholders may experience a purchase declined at point-of-sale or during the processing of an online transaction. Reasons may include:

1. Purchase exceeds the $3,000 transaction limit.
2. Purchase exceeds the monthly dollar limit established for the card.
3. Merchant category code not included on CCC’s acceptable list of codes.
4. Incorrect expiration date, CVV, or address was entered.
5. International Purchase

If your VISA Card is declined with a vendor, send an email to patty.mead@colbycc.edu.  The VISA Card Administrator will contact Adams Bank to determine the reason for the decline. Please include the following items in your email: last 4-digits of the card, cardholder’s name, vendor name, amount to be paid to the vendor, description of purchase, and if it is an international charge the country charging the purchase. These items will help us in getting the bank to open the card for the charge to go through the first time. the card for the charge to go through the first time.

Resolving Errors, Disputes, Returns and Credits

The cardholder is responsible for contacting and following up with the vendor on any erroneous charges, disputed items or returns as soon as possible. Cardholders are strongly encouraged to communicate in writing in order to establish a written trail of communication (i.e. email, letter, etc.). If the cardholder is unable to reach agreement with the vendor, the next step is to contact the VISA Card Coordinator.

The VISA Card Coordinator may request the cardholder to provide all supporting correspondence, sending information to Thomas Hall. The associated backup will be forwarded to Adams Bank for resolution with the vendor. The bank must be notified of any disputed items within immediately.

Disputed billing can result from failure to receive goods or materials, fraud or misuse, altered charges, defective merchandise, incorrect amounts, duplicate charges, credits not processed, etc. In the event of fraud notify the VISA Card Coordinator immediately. Documentation regarding any resulting credits should be kept to explain each item to be returned or exchanged.

Penalties

Obtaining a VISA Card is a privilege and must be used appropriately. Failure to follow the policies and procedures of the College and VISA Card program could result in written warnings, cancellation of the card, and even loss of position. Buying from established contracts, providing supporting paperwork, processing payment in a timely manner, etc., are critical elements to a successful College wide card program.

 

Business Procurement Card Department Responsibilities

General Guidelines

The business office determines who is eligible for a card, authorizes the VISA card, audits and signs transaction logs, controls spending through the bank summary review and maintains records.

The VISA Card Coordinator will coordinate with the VISA Administrator to get the cardholder training. Once the appropriate training has been completed, the VISA Coordinator will request the card from Adams Bank and the VISA Administrator will activate your card and contact you via email when the card is available for pick-up.

If an employee leaves the department or assumes different duties that do not require the use of the procurement card, the department’s business office is responsible for retrieving and cutting up the card and communicating this information to Business Affairs Office.

Record Keeping and Documentation

Individuals should receive all supporting documents for each purchase made on a procurement card. They should then have all necessary documentation to prepare a purchase order (PO) to pay the monthly statement. These supporting records must be maintained with each month’s statements and POs in accordance with College retention policies.

Reconciliation and Approval Process

The department/unit business office is responsible for editing and approving final transactions including funding, object code, and descriptions.

 

BILLING, PAYMENT AND ACCOUNT DISTRIBUTION PROCESS

General Guidelines

Each cardholder will receive a statement of activity for the month with access to their account online. This is to be used to reconcile invoices. Concurrently, a control account statement is emailed to Thomas Hall from which the Business Affairs Office will process Adams Bank’s monthly payment.

Paying the statement

When the cardholder receives the monthly bank statement it should be immediately reconciled along with all supporting documentation. Charge slips and receipt tapes should be matched to the statement. If a receipt is missing, the vendor must be called and asked to provide a detailed invoice, credit memo, or an adequate substitute. Verify purchases again for sales tax on each item and request a credit, if needed. Check state contract items and verify that shipping charges were handled according to the contract.

As long as the attached invoice, or other payment document is itemized, the items purchased may be described in general terms. Each individual is responsible for allocating purchases to the appropriate funding and object code.

If inappropriate purchases appear, the employee should supply a justification. If the justification is insufficient, appropriate measures should be taken to receive a credit from the vendor for the purchase. To obtain a credit a cardholder can return the goods.

Once the statement has supporting documentation for each entry on the statement and the receipts all match the statement, a POR must be prepared.  As long as the attached invoice, packing slip   or other payment document is itemized, the items purchased may be described in general terms.   Each department is responsible for allocating purchases to the appropriate funding and object code.

If inappropriate purchases appear, the employee should supply a justification. If the justification is insufficient, appropriate measures should be taken to receive a credit from the vendor for       the purchase. To obtain a credit a cardholder can return the goods.

The attestation must be signed by the cardholder and someone with signature authorization.

The supporting hard copy documentation should be sent to the VISA Coordinator within 10 days of the credit card statement.

Auditing of Business Procurement Card Program

The Business Affairs Office will review all transactions and supporting documentation when the POR arrives in Thomas Hall to ensure that the Colby Community College policies and procedures are followed.

The Colby Community College Office of Internal Audit may conduct periodic audits to determine compliance with Business Procurement Card policies and procedures.

The CCC Purchasing Office reserves the right to conduct random audits of departments throughout the program to ensure compliance with purchasing rules and regulations. If abuse is found during these audits your card may be revoked.  Any minor offenses will be documented and the documentation will be signed by the VISA Coordinator.

Violation Notices

The Business Affairs Office may issue a violation notice for misuse of the VISA Card, i.e. charging something to the card that is not allowed.

Cardholders receiving 3 violation notices within a one-year period may be reviewed for permanent revocation of their VISA Card.

Sales and Use Tax

Colby Community College, as an agency of the State of Kansas and is exempt from paying Kansas sales or use tax per KSA 79-3606(c). When Kansas sales tax is inadvertently included in a transaction, departments are required to subsequently obtain credit for tax paid. Cardholders are strongly encouraged to make all request for a refund of sales tax in writing (email, letter, etc.). If the sales tax inadvertently is included with the transaction please provide a reason as to why it occurred.

Prohibited Purchases

• Alcohol
• Ammunition
• Firearms
• Contact Information

The VISA Card Coordinator may be reached at patty.mead@colbycc.edu. 

 

[Revised May 2017; October 2020]