5.1 Controls Prior to Use

5.1.1 Purchases are controlled by external bank controls and internal policies and procedures.  Prior to giving purchase approval, the bank checks the following criteria:

• Dollar limit of individual transaction

• Monthly dollar limit

• Daily dollar limit

• Merchant code

5.2 Controls During/After Use

5.2.1 Expenditure reports are reviewed regularly to monitor purchasing activity.  The Incremental Purchasing Report, for example, is a report by cardholder that shows all multiple purchases to the same vendor on the same day.

Other reports are available to show overall purchasing activity by cardholder, department, division and College. 

5.3 Limitations/Approved and Prohibited Use

5.3.1 Spending parameters are established by the Purchasing Program Manager for each of the cardholders.

5.3.2 Changes in limits can be requested from the procurement card Purchasing Program Manager if circumstances warrant a review.

5.3.3 Transactions are limited by the amount that can be spent and the type of purchase being made. 

5.3.4 A cardholder may only make purchases for his or her area/department, and may not make purchases for any other area/department. Contracts and Grants purchases must follow all CNM and funding agency rules and regulations.  Separate cards are issued for Contracts and Grants purchases.

5.3.5 Prohibited items are established by the Governing Board, the Purchasing Director, and the Program Managers.

5.3.6 Artwork, awards and services of any kind, including memberships and registrations,  may not be purchased with the procurement card.

5.3.7 CNM's Safety Director must be notified of all purchases of hazardous chemicals and radioactive materials.  This is accomplished by forwarding copies of all packing lists and Material Safety Data Sheets (MSDS) to the Safety Director.  For more information on hazardous materials, refer to IS-1406, Standards for Hazard Communication.

 

 

5.4 Purchases

5.4.1 The procurement card is used in the same manner as a personal credit card, but the items selected for purchase are restricted to approved merchant category codes for each department. 

5.4.2 If a cardholder attempts to purchase an item not on the approved merchant code category list, the card purchase is rejected.

5.4.2.1 If a merchant code is blocked and the purchaser still needs to make the purchase, contact a Procurement Card Program Manager. For Contracts and Grants purchases, contact the Assistant Contracts and Grants Accounting Manager.

5.4.3 Each card is given an approved monthly spending limit that cannot be exceeded.  If a cardholder attempts to purchase an item and the monthly limit is exceeded, the purchase is declined.

5.4.4 All purchases made with the procurement card are tax exempt.  If the vendor does not have a tax certificate for CNM on file, inform the vendor that CNM's New Mexico CRS number is imprinted on each card.  Any tax charged to the procurement card is the responsibility of the cardholder.

5.4.5  It is required that the itemized cash register receipt, or online itemized print-out receipt, is kept as part of the monthly reconciliation record.  If items will be shipped to Shipping and Receiving, a completed Procurement Card Order Approval and Receiving Form is sent via e-mail , fax, or inter-office mail, to the Shipping and Receiving Department.  All procurement card receipts issued by the vendor must be included in the monthly reconciliation.

For security purposes, Shipping and Receiving has been directed to return any package they cannot identify.  Failure to send the receiving form to Shipping and Receiving, when making a procurement card purchase, will result in the order being returned to the vendor.

5.4.5.1  If items are too numerous to list manually, fill out the header section of the form, attach copies of the online order confirmation page/receipt with a note "see attached," and send through inner-office mail.

5.4.5.2  For purchases charged to Contracts and Grants, the approval section of the form must be signed before making a purchase.

5.4.6  For items that are ordered online, use CNM's Shipping and Receiving Department address as the "ship to" address.

5.4.7  Cardholders log the items purchased on the Transaction Log and attach the purchase receipts to the log.  In the cardholder's absence, the Control Agent completes the log.

5.4.8  A Procurement Card Program Manager is the only person who can make revisions to Merchant Category Codes.

5.4.8.1  Specialized MCC profiles may be set up for each cardholder, if necessary.

5.5 Returns

5.5.1 If an item purchased with the procurement card is returned to the vendor, the vendor must issue a credit to the procurement card.  Under no circumstances should cash be accepted in lieu of a credit to the procurement card account.  Credit receipts are part of the reconciling packet submitted to the Control Agent.

5.6 Lost Receipts

5.6.1 The cardholder is responsible for obtaining a copy of a lost receipt from the vendor.

5.7 Receiving Purchase Card Purchases

5.7.1  Products ordered with the procurement card that are being shipped must be shipped to CNM's Shipping and Receiving Department address.  The Shipping and Receiving staff checks for damage and completeness upon arrival. 

5.7.2  Any items that are taken as purchase and carry should also be checked for damage and completeness.  The cardholder must work with the vendor in correcting problem situations.  The Control Agent also reviews the order and signs the Transaction Log to indicate that what was ordered has been received.

6. Billing Reconciliation

6.1 The Procurement Card billing reconciliation must be done monthly.  It is the cardholder’s responsibility to submit a reconciliation packet to the Control Agent verifying the correct billing information which includes purchases, charges, credits, and itemized receipts. If the cardholder is absent during the reconciliation cycle, the Control Agent is responsible for reconciling the monthly statement.

6.2 The monthly billing statement is sent to the cardholder so that the statement can be reconciled and the appropriate receipts attached and returned by the 19th of each month.  The Reconciliation Packet that is forwarded to the Purchasing Program Manager includes the following: 

6.2.1  The cardholder's monthly statement with a signature confirming that all of the billing information is correct. 

6.2.2  Notations that indicate any discrepancies in the billing including any explanations that provide information for potential audits. Attach a Cardholder Statement of Disputed Claim if applicable.

6.2.3  All itemized receipts (store or online) reflecting purchases made in the billing period are attached to the billing print out.

6.2.4  Reconciliation Packets for Contracts and Grants purchases also include a pre-approved Procurement Card Order Approval and Receiving Form for each purchase.

6.3 The cardholder must sign off on the billing statement indicating that the bill is reconciled and that all paperwork is in order. 

6.4 The cardholder maintains a Transaction Log for all purchases and transactions with the procurement card, which is reviewed by the Control Agent.

6.5 The Control Agent reviews and signs the reconciled statements and forwards them to the Purchasing Program Manager.

6.6 The Purchasing Program Manager reviews all reconciled statements before forwarding them to the Business Office Program Manager.

For Contracts and Grants purchases, the reconciled statements are forwarded to the Assistant Contracts and Grants Manager, who reviews them to ensure that the purchases are allowed under the funding agency’s rules and regulations.  If not, the charges will be posted to the back-up operational account.

7. Erroneous Declines

7.1 If the procurement card is erroneously declined by a vendor, the cardholder should immediately contact a Program Manager for assistance. 

7.1.1   Contracts and Grants cardholders should contact the Assistant Contracts and Grants Accounting Manager for assistance if their card is erroneously declined.

7.2 If the declined purchase is being attempted outside normal CNM business hours, the cardholder should terminate the purchase and contact a Program Manager (or the Assistant Contracts and Grants Accounting Manager, if applicable) during normal hours.

8. Disputes and Billing Errors

The following circumstances could constitute a disputed transaction:

• Amount of the purchase was altered
• Unauthorized charge
• Merchandise delivered that was not as specified when ordered
• Quantity received not the same as the quantity ordered
• Credit was not received
• Multiple or duplicate charges for the same items
• Merchandise charged on statement but not received
• Order canceled prior to shipment of merchandise
• Merchandise returned but credit has not been issued

The following circumstances do not constitute a disputed transaction:

• Merchandise delivered, but Cardholder on leave and cannot check items
• Order canceled after vendor shipped merchandise
• Cardholder ordered the wrong merchandise

8.1 The cardholder is responsible for resolving disputes or billing errors directly with the vendor. 

8.2 Disputed claims are noted on the billing statements and the Cardholder Statement of Disputed Item is attached.  When a dispute is resolved, the cardholder must ensure that the billings reflect the correct amount for all credits.

8.3 When the dispute has been resolved, the bank issues a credit that appears on the cardholder's next billing statement.

8.4 Unresolved disputed claims should be sent to the Program Managers.

9. Inquiries Regarding Accounts

9.1 Cardholders or Control Agents can request the following inquiries from the Program Managers: expenditures by category, total vendor purchases, declines, expenditures by area, and when an item has been charged to an account.

9.2 Requests for inquiries are made by e-mail messages sent to one of the Program Managers.

10. Security and Liability

10.1 A Procurement Card can only be used by the assigned cardholder.

10.2 Any misuses of the procurement card result in disciplinary action in accordance with policy at CNM up to and including termination.  An employee’s wages can be garnished to pay for unapproved purchases after a court order of garnishment has been entered against the employee.

 

10.3 The Procurement Card should always be kept in a secure location so that it is protected from theft or misuse.  The account number must remain confidential to avoid misuse.

10.4 Any incident of card misuse may result in cancellation of card privileges.

10.5 Charges made on CNM Procurement Cards do not affect the personal credit of the  cardholder.

11. Lost, Misplaced or Stolen Cards

11.1 Procurement cards that are lost, misplaced or stolen must be reported to Bank of America immediately at the 24-hour number, 1-888-449-2273.

11.2 A CNM procurement card Program Manager  must be notified immediately that the card is no longer in the possession of the cardholder.

11.3 A replacement card is issued from Bank of America after notification is received.

11.4 Repeated incidents of card misuse and failing to adhere to established policies and procedures can result in cancellation of card privileges.

12. Key Contacts

Key contacts are available to answer any questions or concerns related to the procurement card.

Procurement Card Key Contacts

*For Contracts and Grants Cardholders only.

13. Audit Assistance

13.1 Ongoing audits are conducted to ensure compliance with the policies impacting CNM procurement cards.

13.2  To ensure compliance, audits are conducted on cardholders, Control Agents, and the Program Managers by the Procurement Card Program Managers, the CNM Internal Auditor, and external auditor.

14. Changes in Cardholder Information

14.1 Cardholder information must be kept current.  Any changes to the cardholder's employment status or other information must be sent to the Purchasing Program Manager using the Modification of Cardholder Information form.

15. Termination Notification

15.1 Transferring to another department or terminating from CNM results in cancellation of the procurement card assigned to an employee. The cardholder or the cardholder's supervisor/Control Agent should notify the Program Managers immediately of the planned or unplanned termination of the cardholder's employment.

15.1.1  The transferring or terminating employee turns over their procurement card, and all non-reconciled receipts, statements and transaction logs to the Control Agent.

15.1.2  The cardholder or Control Agent completes a Modification of Cardholder Information form and submits it to the Purchasing Program Manager.

15.2 In the case of involuntary termination, the Control Agent must notify a Program Manager  immediately and take possession of the card.

15.3 The cardholder's department is responsible for putting together the Reconciliation Packet and reconciling the cardholder's account immediately upon the cardholder's termination of employment, if the terminating cardholder has not done so before leaving. Submit the Reconciliation Packet to the Control Agent, if prepared by someone other than the Control Agent.

15.4 The Program Managers must notify the bank of cancelled cards and is responsible for destroying and disposing the cards.

16. Records Retention

16.1 The cardholder retains purchase receipts, credits, and Cardholder Statement of Disputed Claim forms only until the monthly billing statement is reconciled.

16.2  Receipts, credits, Cardholder Statement of Disputed Claim forms, and the reconciled billing statement are forwarded in a Reconciliation Packet to the cardholder's Control Agent.  Upon review, the Control Agent forwards the Reconciliation Packet to the Purchasing Program Manager who reviews and forwards the packet to the Business Office Program Manager.

16.2.1  In addition to the above, for purchases being charged to Contracts and Grants, the approved and signed Procurement Card Order Approval and Receiving Form is forwarded to the Business Office Program Manager.

16.3 Receipts for purchases that do not appear on the current billing statement are retained by the cardholder until the following month's statement.

16.4 The Business Office Program Manager retains billing statements until the monthly College billing statement is reconciled. The journal entry and all supporting documents (wire confirmation, statement, receipts) are filed in the journal entry file.  Journal entry files are prepared fro retention as needed and stored by the Records and Inventory Manager.

17. Definitions  

Forms:	Procurement Card Cardholder Application Procurement Card Cardholder Agreement Transaction Log Modification of Cardholder Information Statement of Disputed Item Order Approval and Receiving Form
Support Materials:	IS-1808, Purchase Requisition IS-1810, Department Purchase Orders Frequently Asked Questions Prohibited Purchases Merchant Category Code List
Reference Materials:	Purchasing Department Website