Cardholder Guide

OVERVIEW

The University of Wisconsin-Madison Purchasing Card Program is designed to replace low dollar, best judgment purchase orders, open vendor blanket orders and blanket orders. It is also designed to eliminate the use of petty cash for small dollar purchases and the use of personal funds that are reimbursed through Travel Expense Reports. It allows you to make direct purchases quickly and easily. The purchasing card may be used at any merchant or service provider that accepts the card, except as noted in the UW-Madison Purchasing Cardholder Agreement Form.

PURCHASING CARD ADVANTAGES

The purchasing card enables cardholders to perform more effectively and focus on the value-added aspects of their jobs by reducing:

  • Time needed to purchase and receive
  • The number of requisitions and purchase orders
  • Reimbursements from petty cash
  • Invoicing problems
  • The number of checks issued

WHO CAN BE A CARDHOLDER

  • Purchasing staff
  • Field staff
  • Program support staff
  • Professors, researchers, mechanics, engineers, etc.

THE CARD IS "EASY" TO USE

Here are the general instructions:

  • Determine the appropriate vendor for the materials desired.
  • Give the vendor your Purchasing Card number and the expiration date or present the card at the point of sale.
  • When shipping an item, the department address should be used as the shipping and the billing address.
  • Tell the vendor that the State is exempt from State sales taxes and give the number, Wis DOR tax exempt ES 40706. Exception: Purchases made out of state for consumption out of state may be taxable. A list of states charging sales tax is available on the web by clicking here. If the vendor requests written proof of tax exempt status, fax/mail the vendor the Tax Exempt Letter.
  • If the materials will be shipped or delivered, tell the vendor to enclose or mail a copy of the receipt with the shipment.
  • Record your purchase on a log and remember to retain your receipt or packing slip.
  • Remember, don't use vendors on the ineligible vendor list. Check the web for the current Ineligible Vendor List or check with your site manager for a current listing.
  • UW-Madison Accounting Services pays the bank every two weeks for the previous two weeks of posted transactions.

THE CARD DOES NOT AFFECT YOUR PERSONAL CREDIT RATING

Use of the card results in University liability, NOT a personal liability for the cardholder. Your personal credit rating will not be affected. However, remember that you sign an agreement prior to receiving the card and as such you are responsible for any misuse of the card.

CARDHOLDER RESPONSIBILITIES

  • Ensure appropriate receipt of materials and services and follow-up with the vendor to resolve any delivery problems, discrepancies and damaged goods.
  • For telephone orders, make sure the complete shipping address and instructions are given along with your name, department name, complete street address, room number, city, state, and zip code. If the vendor requires a billing address, provide them with your departmental address as it was submitted on your cardholder account set-up form. Also, ask the vendor to include a sales receipt detailing items purchased in the package.
  • Complete the log in full with the date of the order, name of the vendor, product(s) ordered, quantity and cost. The Fund/Account number column is to be used to indicate any required changes to the default coding assigned to the card. The complete accounting code and name of the individual authorizing the transfer must be indicated. If transferring a charge to federal funds, the authorizing individual must have reasonable first hand knowledge of the activities of the grant involved. The log serves as the official University record. All purchases must be recorded and all detailed receipts attached.
  • Compare your receipts, packing slips, etc., with purchases you have logged. If there are problems, note them on the log and take the appropriate steps.
  • After determining whether your log and receipts reconcile, sales receipts and purchasing card log should be stapled together and forwarded according to the schedule established by your Site Manager. Adding machine tapes should be attached verifying totals, if necessary.
  • In addition, random audits will be conducted for both card activity and retention of receipts/sales slips as well as your other records. Identify the source of funding, and other accounting information on receipts when expending grant/contract monies. Consequences ranging from cancellation of cards to appropriate disciplinary action may be invoked for improper use of the card.

WHAT QUALIFIES AS SOURCE DOCUMENTATION

Supporting Documentation

The original supporting documentation should always be retained in the payment mechanism file; therefore, Purchasing Card documentation should be attached to and stored with the cardholder log. Required documentation includes at least one of the following: charge slip, packing slip, invoice, cash register receipt, order confirmation, service agreement or registration form. Additional documentation maybe required per the cardholder's department or Dean's Office. If no documentation is provided, the handwritten detail and an explanation must accompany the cardholder's log. Receipts should be attached to the log for review by the Site Manager.

Recurring Monthly Charges

Attach the original contract or service agreement to the log that contains the first monthly service fee. A memo justifying the need for the service should also be attached. Each month thereafter, the cardholder should note on the log that it is a recurring service fee since there will not be a monthly receipt.

Phone/Fax Orders

Attach the packing slip or invoice. Although the packing slip often times does not have the price of the items included, it is considered to be acceptable source documentation. The invoice is preferred over the packing slip and should be attached to the log if the vendor encloses it in the shipment.

Registration

Attach a copy of the registration form. A second copy of the form should be made and attached to the traveler's TER when it is completed and submitted into Accounting Services for reimbursement. The registration is noted on the TER with "PC-dollar amount paid" (i.e. PC-$275.00) in the gray-shaded direct billed column of the TER.

Internet Orders

Print and attach a copy of the order screen or confirmation screen. The confirmation screen is preferred over the order screen, if available.

Pick Up Orders

Attach the cash register receipt. If the itemized detail is not on the receipt, write it on by hand.

Documentation Not Available

If unable to obtain any type of documentation at all, write the receipt up by hand. Include the date of the purchase, vendor, items and price. Also attach a brief explanation as to why the original receipt is not attached.

TRAVEL DOCUMENTATION REQUIREMENTS

The Purchasing Card cannot be used for the below listed travel expenditures unless prior approval has been obtained from the cardholder's Department and Dean's Office. Divisional approval must be indicated on a signed Cardholder Travel Agreement form and the cardholder and site manager must attend a Cardholder Travel Training Session prior to using the card for travel expenditures.

Airfare

  1. The original Travel Agency Invoice showing a zero balance or the Ticket Confirmation if the reservation is made electronically. The Invoice/Confirmation must contain the following information:
    • The name of the Traveler
    • The price of the flight
    • The flight dates and a complete itinerary reflecting the most direct flight available
    • The purpose of the trip must be written on the invoice/confirmation
    • The signature of the individual that approves the travel for the department must be on the documentation
    • Travel class (must be coach)
  2. Additional documentation required, depending on the circumstances:
    • A total cost comparison when leaving or returning on Saturday/Sunday to obtain a cost savings in fare
    • A cost comparison if indirect routing or stopovers are indicate

Hotels

  1. The Hotel Folio containing the following information:
    • The name of the traveler
    • The dates of the stay
    • The single room rate and taxes
    • Total price paid
  2. Additional documentation required, depending on the circumstances:
    • The conference brochure if the traveler is staying at the conference hotel
    • If sharing a room, the name of the second occupant must be written on the folio
    • The purpose of the call if business calls are charged to the room

Car Rentals

  1. The car rental contract

RESOLVING ERRORS, DISPUTES, RETURNS AND CREDITS

  • Follow-up with the vendor (first) or the Elan Financial Services on any erroneous charges, disputed items or returns as soon as possible.
  • Any item that is returned, must be returned for credit. Do not accept a refund in cash or in-store credit for another purchase.
  • If the cardholder is unable to reach an agreement with the vendor, the “Dispute Form” should be used to dispute the charge through the bank. The completed form should be faxed to Elan Financial Services and the Program Manager.
  • Elan must be notified of any disputed item within 60 days of the date if the transaction.
  • Documentation should be retained.

INELIGIBLE VENDORS

The eligibility to do business with vendors is contingent on them satisfying or not satisfying s.16.765, Wis. Stats., which imposes certain requirements for affirmative action in employment as well as compliance with s.77.66, Wis Stats., tax laws. Check the Purchasing Services Web site for the current Ineligible Vendor List after logging into the VendorNet system with the generic log on, "uwmad" and "bucky." You will be taken to a page that links to the directory, it is at the bottom of the page, second from last link as well as the Certification for Collection of Sales and Use Tax Ineligible Vendor Directory that lists vendors determined to be ineligible by the Wisconsin Department of Revenue for non-compliance with tax laws.

CARD SECURITY AND ALLOWING SOMEONE TO USE YOUR CARD

  • The cards should be stored in a secure place. In some areas, it is more appropriate for specific individuals to carry the cards. In either case, the account number should be protected as any blanket or open vendor order number has been in the past.
  • The only person authorized to use your card is you, unless you fill out a Designated User Agreement Form for the person to whom you have given authorization. That person should carry the completed Designated User Agreement with them while using that card. Please remember that the individual's name that appears on the card bears the responsibility for purchases recorded to that card.

IF YOUR CARD IS LOST OR STOLEN

  • Immediately notify US Bank (800) 393-3526, University Police and Security (608) 262-2957, and Accounting Services (608) 265-9800.

HOW TO CANCEL THE CARD

When a cardholder leaves the department, cancellation of the card is to take place prior to or immediately following the cardholder's last day of employment unless extenuating circumstances exist. Timely cancellation of the card is an integral part of maintaining the integrity of the program. If all items ordered on the card have been received prior to the cardholder's departure date, the cardholder is to cut up his/her card and turn it into the department Site Manager to begin the cancellation process. The Site Manager then disposes of the card and completes the Cardholder Account Set Up form with the cardholders name, the request date, the last three digits of the card number and a checkmark in the "delete" box option on the top of the form. The Site Manager disposes of the cut up card and forwards the form on to the respective Dean's Office for updating of the Division records. The Dean's Office will forward the form on to the Program Manager for card cancellation An e-mail to the Program Manager in lieu of the form is acceptable provided the above information is included and the Dean's Office is cc'd on the memo.

If items remain outstanding or backordered, the cardholder is to cut up the card and turn it over to the Site Manager. Once the outstanding orders have posted, the Site Manager is responsible for canceling the card via an e-mail or the Cardholder Account Set Up form.

Under no circumstances should the department continue to use the card to order supplies and services after the cardholder's departure date. Departments must acknowledge the fact that the cardholder is ultimately responsible for all orders placed on the card and continued use of the card after the cardholder's departure date should not be requested or expected. The department must respect the cardholder's rights and responsibilities. Whenever possible, complete the application forms to obtain a card for the new employee or an interim replacement cardholder prior to the current cardholder's departure date.

CARD RENEWAL

  • Your new card will automatically be renewed and mailed to you at the address on file before the renewal date.

CHANGING CARD INFORMATION

  • Default account coding, spending limits, frequency, etc., may be changed by contacting your Site Manager.
  • Please remember, the name on the card cannot be changed to someone else. A new card must be requested.

IF YOU LEAVE OR TRANSFER

  • Your card must be cut up and returned to your Site Manager. Your Site Manager will cancel the card via the Cardholder Account SetUp Form or an e-mail to the Purchasing Card Program Manager with a cc to your Deans office.

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