The Procurement Card Guide provides cardholders and approvers with information about the RIT procurement card program and familiarizes them with their responsibilities. The Procurement Card Guide is available on the Controller's Office website.
The Controller's Office administers the procurement card program at RIT. The Accounting Operations Department and the Procurement Services Office staff periodically review all procurement card policies and procedures and revisions may be made as part of this process. Changes are communicated via e-mail to active cardholders and managers and training is provided, as needed. All changes and/or revisions to the Guide will be published on the Controller's Office website and will be effective when issued.
Detailed information regarding the use of the PNC ActivePay reporting system is available in the RIT PNC ActivePay Cardholder User Guide on the Controller's Office Website.
The procurement card program streamlines RIT's procurement system, supporting the operating needs of the University, consistent with good procurement practices. There are many benefits to using a procurement card to make small dollar purchases including:
Speeds up the purchasing and payment cycle, making it easier to keep track of your department budget.
Enables use of RIT's sales tax exemption.
A purchase order does not have to be processed.
Orders are received in less time.
You have direct contact with the suppliers that you choose to use.
You will receive ordered goods directly at your specified location.
VISA pays the supplier within three business days.
Payment of invoices and issuance of checks are eliminated.
The procurement card is not intended to be used for travel including airfare, hotel, automobile rentals, and travel related meals/hospitality. The RIT/NTID PNC Travel Cards are specifically designed for travel and hospitality use. Refer to the RIT Travel Policy and Procedures Manual.
Participation in the RIT Amazon Business account requires the use of an RIT procurement card for the method of payment. The RIT Amazon Business account may only be used for purchases that are for official RIT business use. Use of the RIT Amazon Business account for personal purchases is strictly prohibited and will result in termination of procurement card privileges.
Before making a purchase, cardholders need to consider if the service provider they are purchasing goods from has a personal or familial relationship (close relative/family member) with an RIT employee. A third party may consider that this relationship may compromise the competitive process. If yes, determine who the employee is and the relationship. Communicate this information to Procurement Services for their determination, if in fact there is a conflict of interest. Procurement Services will determine mitigating resolution. See Procurement Services Manual section 3.2 at the following PSO website.
B.) How to Apply for a Procurement Card
Issuance of a procurement card is subject to the approval of the Procurement Services Office and is based on business need, other methods of purchasing available , and the number of cards already in use in the department.
Complete a PNC Bank Procurement Card Application (new department or new individual) form available on the RIT Service Center. Provide all required information including name, UID, business address, e-mail address, and business phone number.
In the justification section, include information about the anticipated use of the card (frequency of use and average transaction amount) and the business need.
The PNC Bank Procurement Card Application form will be routed through the RIT Service Center for approvals. User will submit request and the form will first be routed to Procurement Services for approval. The appropriate approving supervisor, the individual having signature authority for the department to be charged for card expenses will be selected by the Controller's Office and the RIT Service Center form will route to that individual for approval. If you (the prospective cardholder) are the signature authority, your immediate supervisor will be designated to approve the application through the RIT Service Center.
Provide an RIT 24-digit general ledger account number that the majority of purchases will be charged. This "default" account number is where all charges will be posted in the general ledger, unless changes are made in the PNC ActivePay System prior to transferring transactions to the general ledger.
If the default account for the card is a grant or contract, the application will be routed to Sponsored Programs Accounting for approval.
The cardholder is required to review and accept the terms and conditions as outlined in the PNC Bank Procurement Card Program - Cardholder Agreement prior to the processing of the application. The prospective cardholder can attached a signed form to the RIT Service Center request.
Upon receiving all required approvals for the application and agreement form, the University Card Administrator (UCA) will process the application with PNC Bank.
New cards are received in the Controller's Office in approximately five (5) to ten (10) business days. The UCA will contact you when your new card is available and make arrangements to deliver the card via RIT interoffice mail.
C.) Single Transaction and Monthly Limits
While procurement cards are issued to individual employees, the department head or individual with signature authority authorizes who can apply and be issued a procurement card and may request specific dollar limits (single transactions and monthly limits) subject to University-wide guidelines. The final approval for card issuance and applicable limits is the responsibility of the Procurement Services Office and Accounting Operations department.
The typical transaction limit is $1,500 and the suggested monthly limit is $2,500.
The Procurement Services Office approves requests for card limits of more than $2,500 when there is a specific business need, in order to verify compliance with RIT procurement practices. If a higher than $2,500 limit is needed, include an explanation of the business reasons for the higher limit along with the application.
For the occasional transaction over your limit, cardholders may request a temporary limit increase by completing a Procurement Card Limit Change Request form through the RIT Service Center. This form will be routed through the RIT Service Center to obtain approval from the department head or individual with appropriate signature authority for the department. The limit increase request should also include the following information: business purpose, what is being purchased, limit to be raised (single transaction or monthly), duration of the increase, name on the card and last 4 numbers of the card.
A cardholder is expected to check the card's available balance in the PNC ActivePay System and to estimate the additional amount of credit needed that would last the remainder of the month.
Requests for multiple limit increases in a single month or within a few months of each other should be rare. If multiple limit increases are needed in a short time frame, discuss a permanent limit increase with the UCA.
Approvals for limit increases require due diligence. Limit increases are reviewed, evaluated and, if approved, processed in approximately 3-5 days.
Annually managers will be asked by the Controller's Office to confirm all card limits to ensure that the limits are still appropriate to meet the business needs of the department.
Annually all cards will be reviewed to determine if the monthly limits are appropriate. Card limits may be lowered or raised based on the spending use.
D.) Procurement Card Transactions and Default Account
Each procurement card is assigned to a specific RIT 24-digit general ledger account number, this is the default account. Charges incurred on the procurement card during a billing cycle are charged directly to the 24-digit default account indicated on the cardholder's application.
The UCA will download transaction information from PNC and post it to the Oracle General Ledger via a journal entry based on the Procard Posting Schedule available on the Controller's office website.
You (the cardholder) or your designee (proxy) may have access to the PNC ActivePay System to review transactions on-line and to make account number changes during the month, before the transaction are posted to the general ledger. (For additional information about changing the default account number, review section II. The Procurement Card Process, C. How to Change the Default Account Number.) Once the transactions are posted on the general ledger, account number corrections can be processed by completing a journal entry. If you do not have access to the account number that should be charged (e.g. a department outside your responsibility), submit appropriate approvals from the other department with your journal entry.
II. The Procurement Card Process
A.) How to Make a Purchase
Purchasing small dollar items with the procurement card is simple and convenient. Just follow these steps:
Identify the item that you would like to purchase.
Call, visit or fax the supplier that you selected. Be specific about the item and quantity that you are ordering.
Pay with your procurement card. If you have more than one card, select the card that is assigned to the correct general ledger account number for the purchase.
Provide the following information to the supplier:
Your name (mention that you are an RIT employee).
Your procurement card number and expiration date.
RIT's tax exempt number (which is on your card).
You may be asked to provide the CVV/CVC number - the 3 digit number located on the back of the card.
Your campus delivery address (building and room).
Tell the supplier to put "VC" (Visa Card) on the shipping label, indicating that it is a procurement card order.
RIT is sales tax exempt. Provide RIT's tax exempt number to the supplier when you place an order to ensure that sales tax is not charged on your purchase. If a supplier requires a copy of the sales tax exempt certificate, go to the Controller's Office website tax exemption state by state and using your DCE login and password download the form and fax or email to it to the supplier.
Keep track of your purchases throughout the month. The following information will be helpful to you when you reconcile your individual card statement from PNC:
Requestor or person for whom you placed the order.
Item description and quantity.
Total amount of the order, including shipping and handling.
Date the item(s) was received.
Business purpose of the purchase.
Account number to charge, if different than the card default account number.
In the PNC ActivePay System, under Report Studio, Company Reports, is the RIT Transactions Details Report or under Standard Reports is the Expense Log. The notes entered on the Transaction Management Screen will appear on both reports. Either report can be submitted with the Monthly Procurement Card Reconciliation and eliminates the need to write the business purpose on each receipt. Both reports can be exported as a pdf.
Use your procurement card to pay for items such as:
Office, lab and classroom supplies (hazardous materials may only be purchased by an Authorized Hazardous Materials Purchaser).
Off-campus hospitality - local only (use your PNC Travel Card to pay for meals while traveling out of town on RIT business).
Software and computer supplies.
All other goods, with total order cost per vendor under $5,000 (except those specifically excluded – see section II.A.9).
Do not use the card for:
Capital equipment (items $5,000 and over).
Event registrations between two RIT departments, use chargeback journal entries. i.e. President's Alumni Ball, Putting on the RITz dinner.
Gift certificates to individuals in lieu of payment for services.
Payments for services or any other good for which bidding and negotiation is required.
Payments to individuals for services (i.e. those individuals who provide you with a social security number rather than a tax identification number).
Third-party providers such as PayPal may not be directly used for internet transactions unless they are the only method available to pay for purchase. (Note; some purchases through PayPal indicate PayPal as the vendor). Cardholders should make every attempt to choose another merchant whenever possible. If it is necessary to procure using a third-party, the approving official must ensure there is adequate supporting documentation showing a detailed review of the purchase and that the use of the third- party payment merchant was unavoidable. If a merchant uses PayPal without the knowledge of the cardholder, the transaction is acceptable. These types of transactions will be considered high risk for risk management and review purposes. Purchases made using a third party vendor are not disputable.
Hazardous materials unless you are an Authorized Hazardous Materials Purchaser. Hazardous materials for purchasing purposes consist of:
Hazardous chemicals. This includes all chemicals except for retail products used for routine household –like activities purchased in limited quantities (cleaners, dish soap).
Printers without pre-approval from Procurement Services Office.
All Apple Computers, iPad's, Apple TV's and Apple Watch's must be purchased through the RIT Digital Den to enable Apple Device Enrollment.
Contact the Procurement Services Department at (585) 475-2107 if you have questions about purchasing a specific item (not on the list) with the procurement card or if a supplier does not accept VISA as a method of payment.
Verify that the supplier filled the order correctly. Check the contents of the package or verify that all the items you ordered were delivered.
Make sure that the supplier charged you correctly and did not include sales tax. If there is an error, contact the supplier directly.
Keep an invoice or sales receipt from every delivery or purchase. You will need to provide this documentation with your monthly cardholder statement to the authorized approver. Once the Monthly Statement Certification is signed by an authorized approver (and the second approver if needed), the monthly statement, original receipts and signed certification will need to be scanned and submitted to the UCA.
C.) How to Change the Default Account Number
All card transactions are automatically charged to the default 24 -digit account indicated on the card application. Cardholders may change the general ledger account number in the PNC ActivePay System during the month and prior to the time when the transactions are posted to the general ledger.
The UCA will download transaction information from PNC and post it to the Oracle General Ledger via a journal entry based on the Procard Posting Schedule available on the Controller's office website.
If you do not make account number changes in the PNC ActivePay System, each transaction billed to your card for the period will be charged to the default 24-digit general ledger account number.
When you review your monthly department statement and other detail financial reports from the Oracle financial applications, or if you make an on-line inquiry in the general ledger, you will see individual transaction amounts on the appropriate 24-digit account number.
If you do not make account number changes in the PNC ActivePay System before your card transactions were posted, you may process a journal entry in the Oracle general ledger. If you do not have access to the general ledger to process journal entries, please utilize the form on the RIT Service Center RIT Request to Add Oracle Responsibilities.
It is very important to confirm/verify all charges on your monthly card statement. Follow the steps below to prepare your statement for review by Accounting:
On the first day of the month, you may print/download your statement from the PNC ActivePay System listing the charges and credits made to your procurement card during the prior month. You may also receive an email from PNC with the statement attached. You will also receive a statement from PNC in the mail. If you did not make any purchases, you will not receive a statement. The statement you receive is not a bill; it is for information and record keeping only. RIT will pay PNC directly for your charges.
You have approximately two weeks from the statement date to verify transactions and return your reconciled procurement card statement packet to the UCA. Refer to the Procard Posting Schedule available on the Controller's Office website.
Gather the invoices and receipts for the transactions that are identified on your statement. Match the invoices and receipts to the charges listed on your cardholder statement to verify that there are no billing errors. Put the invoices and receipts in order according to the statement charges.
Indicate the business purpose on each receipt including "who" (i.e., names of the people who attended the function), "what" (i.e., what was purchased, if not readily apparent from the receipt or what was discussed), and "why" (i.e., why the expense was incurred and the business connection to RIT such as donor relations, faculty recruitment, etc.). You can also enter this information into the PNC ActivePay System throughout the month, for more information refer to section II. The Procurement Card Process, A. How to Make a Purchase #7.
For hospitality expenditures, in addition to the business purpose, indicate whether alcohol was consumed (if an itemized receipt is not available). If it was, indicate the amount paid for the alcohol and the 24-digit general ledger account number that the alcohol was charged to (i.e., all charges for alcohol must be moved to object code 79050). If the change was processed on a journal entry and not in PNC, please attach a copy of the journal entry. If no alcohol was consumed, indicate "no alcohol" on the receipt. If the number is changed in the PNC ActivePay System and you print the Transactions Details Report, it will show the 24 digit number charged.
If gifts were purchased, complete and include the RIT Gifts Given Form, you will need to provide your DCE login and password. Send the original to Payroll, 100 Park Point, 2nd floor, and attach a copy to the statement. Please note "original sent to payroll" on the receipt.
The first approver must be at least one level of management above the cardholder and have signature authority to approve financial transactions for the default account charged.
If a second approver is required (for example, a departmental procurement card), he/she must be one level above the first approver and have signatory authority to approve financial transactions for the default account charged.
If any of the authorized approvers initiated a transaction or in any way "participated" in an event for which transactions are charged to the procurement card, a second (or third) signature is required. The additional approver must be one level of signature authority above the last approver.
Department Cards (i.e. not in an individual's name) always require a second approver. The second approver must be one level of signature authority above the first approver.
Retain the original statement, certification and procard documentation. Electronically send the complete package to: email@example.com. The subject line should be the name of the file as noted below.
Name the file: last name, first name, last 4 digits and month i.e. Controller's Office, Dept_3199_May19.
The order should be: the monthly statement certification, procard statement, the Expense Log or Transactions Details Report, and the receipts in the order they appear on the PNC statement.
Retain the previous fiscal year and the current fiscal year until you are notified that the original receipts can be destroyed. Accounting will randomly ask for the original statements and receipts during each month. Accounting will send an email to tell you when to discard the previous fiscal year statements.
All statements, along with documentation are maintained electronically for a period of nine fiscal years.
Keep these tips in mind as you match invoices/receipts to the charges:
The charge amounts are listed on your statement by transaction date and vendor.
A supplier's billing date may be different than your order date. The shipping dates on the packing slips and receipts may help you to match them to your statement charges.
If you receive an order in more than one shipment, the dollar total of the receipts or packing slips from the partial shipments may have been billed as one charge on your statement. In other words, you may need to add together the dollar totals on several packing slips or receipts to equal the charge listed on your statement.
If you only received a partial shipment, the charge on your statement should be a partial charge. By law, a supplier cannot charge your card until the order is ready for shipment or a service has been rendered.
A supplier's billing name may be different than the name by which you know them. Try to use other identifiers, such as a charge amount or date, to match these receipts and statement charges.
If you notice any errors on your statement, note them on the statement and follow the instructions for "Disputing a Charge." (You still must review and return your statement to Accounting by the due date).
If sales tax is charged, contact the vendor to get the sales tax refunded to your credit card; do not dispute the charge. If efforts are exhausted and the sales tax is not refunded, the cardholder is responsible for documenting the process that was followed. Include the documentation with the procard statement packet.
If you do not have a packing slip or receipt, write "NR" next to the purchase amount along with the business purpose or include a memo of explanation.
Sign and date the Monthly Statement Certification.
The individual you directly report to, your supervisor, must review, sign and date the Monthly Statement Certification.
A second approver, one level above the first approver, must review, sign and date the Monthly Statement Certification for Department Cards (i.e. not in an individual's name).
Electronically send your statement with documentation and the Monthly Statement Certification to the firstname.lastname@example.org by the due date. Failure to submit approved card statements will result in suspension of card privileges.
Retain a copy of all documentation with the approved Monthly Statement Certification for the current and previous fiscal year.
III. Procurement Card Administration
A.) Cardholder Responsibilities
All purchases will be made in accordance with applicable University purchasing policies and procedures, according to the information outlined in this Guide.
The RIT Procurement Card is for RIT approved business use only; it is not for personal use. Use of the card for personal purchases will result in termination of card privileges, as well as possible termination and legal action.
Only designated employees of the University may obtain a procurement card with approval of his/her supervisor or an individual with appropriate signature authority.
Prior to obtaining a procurement card, the cardholder is required to accept the RIT card terms and conditions outlined in the Cardholder Agreement Form indicating that he/she has reviewed and agreed to the provisions of the card program.
Upon signing the Cardholders Agreement form, you (the cardholder) acknowledge you have received a procurement card and that all expenditures are subject to review and periodic audit to ensure compliance with internal and external policies.
RIT may revoke a procurement card at any time for inappropriate or fraudulent use which will result in suspension of the cardholder's privileges and possible termination of employment from RIT and legal action.
The cardholder will electronically send his/her monthly card statement, with documentation and the Monthly Statement Certification signed by the cardholder and approver, to the UCA by the due date. A second authorized approver is required on the certification for a department card.
The cardholder agrees to keep the card in a secure place.
The cardholder agrees to treat supplier-pricing information as proprietary.
In order for the procurement card program to remain a viable purchasing/payment method at RIT, approvers must fully understand their responsibilities as outlined below:
Approvers are expected to review all transactions charged to the card to ensure they were made for RIT approved business use only in accordance with applicable University purchasing procedures and the policies outlined in this Guide.
Approvers must ensure that the cardholder scans his/her monthly card statement with documentation along with the Monthly Statement Certification signed by the cardholder and you, the approver, to the UCA by the due date.
Approvers should be aware that all card transactions are subject to periodic review and/or audit to ensure compliance with internal and external policies.
Approvers must be aware and consider if the service provider which the cardholder purchased goods from has a personal or familial relationship (close relative/family member) with an RIT employee. A third party may consider that this relationship may compromise the competitive process. . If yes, determine who the employee is and the relationship. Communicate this information to Procurement Services for their determination, if in fact there is a conflict of interest. Procurement Services will determine mitigating resolution. See Procurement Services Manual section 3.2 at the following PSO website.
Approvers are responsible to ensure that all purchases made with the PNC Procurement Card shall cease immediately upon the cardholder's separation from RIT or upon reassignment to another department within the University.
Approvers must be aware that inappropriate or fraudulent use of the RIT PNC Procurement Card may result in suspension of the cardholder's privileges and possible termination of his/her employment from RIT as well as possible legal action against the Cardholder. Approvers may also be subject to disciplinary action if it is determined that they were negligent in exercising their responsibilities as managers to ensure that procurement cards are used for business use only.
C.) How to Dispute a Charge
Occasionally, billing errors may occur. For example, you may be charged sales tax, or you may be charged for goods and services that you did not receive. You may be charged an incorrect amount, a credit to your account may not have been processed, or a fraudulent charge may have been billed to your account. Also remember that, by law, suppliers may not bill you for purchases until your order is ready for shipment.
If an incorrect charge appears on your statement contact the supplier to report the error. Most errors can be resolved by requesting a credit for incorrect charges. Credits should be reflected on your next monthly statement.
If you are unable to resolve the issue with the supplier, dispute the charge within 60 days of the first bill. Complete the PNC Billing Inquiry Form and sign the form on the Primary Cardholder Signature line. The UCA does not have to sign the form. The cardholder can mail the form to PNC Bank, PO Box 2859, Kalamazoo, MI 49003-2859; or fax 269-973-1688; or email email@example.com. Attach a copy of the form with cardholder signature to the procard statement packet to identify you are disputing a charge.
If your card is lost or stolen after work hours Monday through Friday or on a weekend, call PNC Customer Service immediately (1-800-685-4039) to report that your card is missing. PNC will cancel your card. Contact the UCA on the next business day by submitting the RIT Service Center form PNC Procurement Card Application - Replacement Card.
The UCA will request a new card from PNC and it will be mailed to the UCA. The UCA will notify you upon receipt of the new card.
E.) Card Renewals and Cancellations
PNC will automatically mail a new card to the Controller's Office during the month that your card is due for renewal. The UCA will notify you upon receipt of the new card.
Cardholders and approvers are subject to disciplinary action for procurement card misuse. Disciplinary measures may include card cancellation, termination of employment from RIT and possible legal action. The following items are examples of procurement card misuse:
Use of your procurement card for personal benefit.
Use of your procurement card by anyone other than you (excluding department cards).
Use of your card to purchase capital equipment (equipment with a useful life of one year or more with a unit value of $5,000 or more), without prior approval of the Procurement Services Office and Property Accounting.
Not reviewing and submitting your monthly statements with documentation to the UCA within the time frame allowed.
Use of your procurement card after suspension or termination.
G.) Card Statement Review Process
The UCA reviews monthly cardholder statements to verify that:
The Monthly Statement Certification is included and signed by the cardholder, approver, and second approver (required for Department Cards).
All original receipts/invoices with itemized amounts are included with the statement packet (arranged in order as they appear on the statement).
Sales tax was not charged.
The business purpose is clearly noted including "who", "what" and "why".
If alcohol was purchased, that documentation is attached to show that the expense was moved from the default account number to object code 79050 (government unallowable).
If gifts were purchased, that a completed RIT Gifts Given Form is included with the statement, when necessary.
The UCA also tracks the date of receipt of each Procurement Card Monthly Statement Packet. If the statement along with receipts and appropriate approvals are not scanned to the UCA by the due date, an email will be sent requesting the information. Late submission of the procurement card packet is considered an instance of non-compliance; failure to comply with this requirement may result in revoked card privileges.
An email is sent when non-compliance instances are identified during the review process. In addition to late submission of the Procurement Card Monthly Statement Packet, other non-compliance reasons include: business purpose missing, RIT Gifts Given Form not completed, personal purchases, sales tax charged, appropriate signature(s) missing, and other questions. If there are non-compliance issues for 3 months in a row or 3 within a 6 month period, the card will be evaluated for cancellation.
In order to meet government compliance and RIT internal control requirements, card transactions will be audited periodically to verify that items billed to the card were actually received and that all procurement card policies and procedures noted in this guide were adhered to.
An Internet reporting system from PNC that provides authorized cardholders with access to their daily card transactions. Cardholders also have the ability to change the default 24-digit account number on-line prior to posting to the Oracle general ledger.
Purchasers are individuals who are approved by their College’s Deans Office or the RIT Environmental Health and Safety Office to purchase hazardous materials. Each purchaser must take the required Authorized Hazardous Materials Purchaser training and complete the Hazardous Materials Purchasing Section of the PNC Procurement Cardholder Agreement. This authorization process is described in detail on the EH&S website along with access to associated forms and training.
Purchases recorded during a time period of thirty days from the last business day of one month to the last business day of the next, during which purchases are made and reported to the bank for payment.