Purchasing Cards-Petty Funds Policy (105.017)

Purchasing Cards-Petty Funds Policy (105.017) - Policies, Administrative, UWMF, UWMF-wide, Finance


Purchasing Cards – Petty Funds Policy

The University of Wisconsin Medical Foundation (“UWMF”) Purchasing Card –
Petty Funds (“Card/card”) provides a convenient, efficient and cost-effective
method of purchasing incidental items at the clinic/program level. The card is
intended for best judgment purchases (up to card limit).

Obtaining a Card
The card is available to UWMF clinics/programs after a review has been
completed by the UWMF Treasury Analyst. All potential cardholders, including
card administrators, will be required to complete a Card Application & User
Agreement form before obtaining a card.

Note: Students, graduate students, interns and residents may not be a card
administrator or cardholder and may not have access to any Card functions.

Personal Liability
The use of the card results in UWMF liability, not personal liability for the
cardholder. Your credit rating will not be affected. Please remember that you
sign an application and agreement prior to receiving the card, and as such, you
are responsible for any misuse of the card.

General Conditions of Use
1. Recognize the importance of protecting the account number;
2. Store the card in a secure environment;
3. Recognize that the card is issued in your name and not allow others to
use the card without documented permission;
4. Ensure appropriate documentation and record retention;
5. Comply with any additional conditions and/or restrictions by user type;
6. Notify the Treasury Analyst if the card is lost or stolen. The card’s cost
center may be liable for all charges incurred until the card is reported lost
or stolen to the bank (see below);
7. Pay no sales tax on purchases from vendors. Card administrators and
cardholders should emphasize UWMF’s tax-exempt status and exemption
number when placing orders. If sales tax is charged in error, reasonable
attempts should be made to recover the tax;
8. Understand and comply with prohibited and/or restricted lists, including
Merchant Category Code (“MCC”) restrictions;
9. Understand that misuse or fraudulent use of the card may be subject to
investigation, disciplinary action and/or termination of employment, and
may be subject to criminal prosecution. Personal use of the card is

7974 UW Health Court 608.821.4220
Middleton, WI 53562 608.821.4221 fax

InterD: 414-FIN

General Purchasing Guidelines
Due to administrative controls, tax and/or legal requirements, limitations apply to
the use of the card. This list is not all inclusive and in no particular order. Please
contact the Treasury Analyst with any questions.

The card may not be used for:

1. 1099 reportable items;
a. Any professional service;
b. Consultant fees;
c. Health care provider fees;
d. Repair of equipment;
e. Maintenance or service agreements;
f. Customized goods (i.e. t-shirts with company logo).
2. Alcohol;
3. Rental of equipment, including vehicles;
4. Vehicle purchases;
5. Cash advances or gift cards/certificates;
6. Capital items;
7. Controlled substances;
8. Weapons, ammunitions, or detonating equipment or materials;
9. MCCs on the Standard Exclusion List.

In addition, no employee may use his/her position to obtain financial gain or
anything of substantial value for the private benefit of himself/herself or his/her
immediate family.

Returns, Credits and Disputed Items
Returns: A credit should be issued for any item that the supplier has approved
for return. The credit will appear on a current or future statement depending on
the date of sale and date of return. Any item purchased with the card that is
subsequently returned to the supplier must be returned for credit. Do not accept
a refund in cash, check or in-store credit format.

Credits: Referring to your receipt or other related documentation, request from
the supplier that a credit be placed on your card account.

Disputed Items: If there is a disputed charge, cardholders should first contact the
supplier to try and resolve. If it is resolved, verify the correction on the monthly
statement. If you cannot reach a resolution with the supplier, please contact the
Treasury Analyst immediately. The Treasury Analyst will work with the
cardholder to write a notice of dispute and submit to UWMF’s card issuer.

Reporting Lost/Stolen Cards, Suspected Fraud
The Treasury Analyst must be notified immediately when you discover a lost or
stolen card. Unlike a personal credit card where cardholders are responsible for
paying the first $50.00, the card issuer holds UWMF responsible for paying all
charges until the card issuer has been notified.

On weekends or after normal business hours, please report lost or stolen cards
to JPMorgan Chase at 800-316-6056. At the first available opportunity, report
the same information to the Treasury Analyst.

Reporting and Auditing
On a monthly basis (frequency subject to change), card administrators and
cardholders agree to review, allocate to cost center(s) and submit documentation
for all charges, credits, disputes, etc. to the Treasury Analyst. UWMF Financial
Accounting will review, and will post to the UWMF general ledger, all transactions
listed on the statement. In addition to the monthly review, internal and/or
external auditors may conduct periodic reviews of card use. Card violations that
will result in a review of privileges include, but are not limited to:

1. Personal use of card;
2. Payment of sales tax on purchases;
3. Use of the card for ineligible purchases;
4. Lack of or unacceptable documentation.

Any misuse of the card or other policy compliance issues may result in the
following consequences:

1. Credit limit reduction to $0.00 (length determined upon review);
2. Immediate and/or permanent card revocation;
3. Disciplinary measures, up to and including termination, as appropriate;
4. Criminal prosecution.

In addition, UWMF will seek restitution for any inappropriate charge(s) including
state, county, local and/or special taxes.

Employment Transfer or Termination
If a card administrator or cardholder transfers or terminates their employment
with UWMF, or a UWMF partner, please notify the Treasury Analyst immediately.
Before returning the card, please cut in half and send to the Treasury Analyst.

Note: If you have created accounts with vendors that relate to your card number,
these also will need to be canceled and re-established as a new account with
your successor.

Approved By: Robert W. Flannery, UWMF CFO/VP Finance
Approval Date: 04/20/2011
Effective Date: 06/21/2011
Supersedes: 01/01/2010

Cardholder Responsibilities
In addition to the General Conditions of Use and General Purchasing Guidelines,
the cardholder must comply with the following:

1. Adhere to the purchase limits and restrictions of the card;
2. Review transactions in smartdata™;
3. Document the business purpose of the purchase within smartdata™;
4. Attach receipts and supporting documentation to the monthly Statement of
Account for allocation to cost center(s), approval and retention;
5. Sign and date the monthly Statement of Account;
6. Submit Statement of Account with receipts and supporting documentation
to your Card Administrator.

Card Administrator Responsibilities
In addition to the General Conditions of Use and General Purchasing Guidelines,
the card administrator must comply with the following:

1. If applicable, comply with statements 1-5 of “Cardholder Responsibilities;
2. Receive signed, monthly Statements of Account from your cardholders
along with the receipts and supporting documentation;
3. Review, allocate to cost center(s) and approve transactions in
4. Sign and date each cardholder’s monthly Statement of Account confirming
your review, allocation and approval of transactions;
5. Submit a copy of all receipts and supporting documentation to the
Treasury Analyst;
6. File and retain the original, signed Statements of Account for a minimum
period of 18 months.

MasterCard Smart Data OnLine™ is a web-based reporting application that helps
organize, consolidate, analyze and manage financial data from cards.

Important Phone Numbers

JPMorgan Chase
Customer Service 800-316-6056
24/7 availability

Sarah R. Meyer 608-821-4267 (direct)
Treasury Analyst 608-333-1008 (mobile)
PPC Program Admin sarah.meyer@uwmf.wisc.edu
Mail Code: 414-FIN

Melissa Corcoran 608-821-4227 (direct)
Payroll/Acct’g Analyst melissa.corcoran@uwmf.wisc.edu
PPC Program Admin
Mail code: 414-FIN

Kathy L. Nelson 608-821-4899 (direct)
Sr. Financial Analyst kathy.nelson@uwmf.wisc.edu
PPC Program Admin
Mail code: 414-FIN