Division of Business Services

3013.5 Purchasing Card Site Manager Review and Reconciliation Process Procedure

Procedure #3013.5; Rev.: 0 (Effective May 8, 2017)
Related Policy: UW-3013 Purchasing Card Policy
Functional Owner: Accounting Services, Division of Business Services
Contact: Purchasing Card Program Manager: (608) 262-3300, meghann.grove@wisc.edu

Download 3013.5 Purchasing Card Site Manager Review and Reconciliation Process Procedure (PDF)

Contents

I. Procedure statement
II. Who is affected by this procedure
III. Procedure
IV. Contact roles and responsibilities
V. Definitions
VI. Related references
VII. Revisions

I. Procedure statement

The UW–Madison Purchasing Card Program is designed to expedite the purchasing process and reduce the costs associated with processing low-dollar, best-judgment purchases. The site manager is the individual responsible for managing purchasing cards at the departmental or divisional level. This procedure provides the site manager with specific instructions on how to review and reconcile the purchasing cards assigned to them. The site manager must not make purchases with a purchasing card they manage.

II. Who is affected by this procedure

Site managers; purchasing cardholders.

III. Procedure

Purchasing card transactions are reconciled in the Shared Financial System (SFS). Transactions are loaded into SFS daily and can be reconciled daily. After a purchasing cardholder verifies a transaction in SFS, the purchasing card site manager (Approver) receives an automated email notification that a transaction is pending approval. Detailed instructions for approving purchasing card transactions are available in the Purchasing Card Approver Business Process Guide (PDF). See below for a summary of the purchasing card transaction approval process.

A. Purchasing card site managers receive an email notification from SFS when a transaction has been verified by a purchasing cardholder. The email is only sent if the cardholder clicks the “Notify My Approver(s)” button after completing their reconciliation. It is recommended site managers routinely review the Reconcile Statement page in SFS for any outstanding transactions for which a notification was not sent.

B. Site managers review transactions for appropriateness and verify all required supporting documentation has been provided.

  1. Review posted transactions for policy compliance:
    1. Verify who made the purchase. A UW-Madison purchasing card may only be used by the employee whose name is embossed on the front of the card.
    2. Verify the purchase is considered best-judgment and within the cardholder’s single purchase limit. The best-judgment purchase limit at UW-Madison is $5,000.
    3. Verify the cardholder did not intentionally split transactions to avoid the single purchase limit and/or the best-judgment purchase limit.
    4. Verify purchases do not require special approvals (see UW-3034 Exceptions/Approvals/Special Handling Policy).
    5. Verify purchases of materials for capital equipment components or fabrication materials are allocated to Account Code 4670 and the appropriate Asset ID is referenced within the provided business purpose.
    6. Verify purchases related to the relocation of an incoming employee (e.g., payments to moving companies, temporary lodging, airfare for employee and family) are allocated to account codes 2880, 2881 or 2883 and enter the new employee’s Employee ID in the Comment field.
    7. Identify purchases that should have been made at ShopUW+.
    8. Verify purchases are in compliance with UW-Madison policies including those listed on the Business Services Policy and Procedure list and the purchasing card list of Frequently Questioned Purchases.
    9. Identify purchases made from Ineligible Vendors.
    10. Identify purchases made with internal vendors and encourage purchasers to use different payment mechanisms for making internal purchases.
    11. Identify sales and use tax paid in error. If sales tax is paid in error in an amount greater than $25, verify the cardholder has documented an attempt to recover the amount from the vendor.
  2. Verify required supporting documentation is included:
    1. Vendor receipts: Invoices, packing slips, cash register receipts, confirmation screens, service agreements, and registration forms are acceptable forms of vendor documentation. All receipts must include the date of purchase, vendor name, items purchased, and pricing information. If the vendor receipt does not contain adequate detail, the cardholder must provide the required information elsewhere in the supporting documentation.
      Note: The Purchasing Card Missing Receipt Form is available for occasional use only. Repeat use of the form should be addressed with the Purchasing Card Non-Compliant Form.
    2. Other supporting documentation: Other required supporting documentation may include agendas, attendee lists, conference brochures, etc., as required by expense-specific policies.
    3. Business purpose: Cardholders are required to provide a business purpose for each transaction that posts to their purchasing card account. The business purpose must provide adequate detail so the site manager can reasonably conclude the expense is appropriate and business-related.

C. Site managers verify intended funding source(s):

  1. All purchasing card transactions are initially allocated to the cardholder’s default funding source. The cardholder and the site manager can reallocate transactions to other funding sources prior to final approval.
  2. Site managers should review the assigned funding and make changes as appropriate (see Accounting Services Coding Information).

D. Site managers address any instances of noncompliance. See Procedure 3013.10 – Address Non-Compliance.

E. After completing the policy review and transaction reconciliation, site managers approve reconciled transactions in SFS.

F. UW–Madison Division of Business Services initiates processing, and approved transactions are posted to WISER.

G. Timeliness of Purchasing Card transaction reconciliation: Cardholders and site managers are required to reconcile transactions within 30 days of the transaction posting date.

  1. If a cardholder has a purchasing card transaction that is not fully approved after 15 days, an automated email reminding the cardholder of the pending transaction will be sent. Emails will continue to send daily until the transaction is fully approved or system closed, including those transactions that have been previously verified by the cardholder, but have not been approved by the site manager. Site managers do not receive reminder emails; therefore, it is the cardholder’s responsibility to either forward the email to their site manager or utilize the Notify Approver(s) button on the Reconcile Statement page of the Purchasing Card module. Site managers may utilize the Transactions Near System Close query available in SFS to monitor aging transactions requiring cardholder and/or site manager approval.
  2. After 30 days, a process will run to “System Close” any purchasing card transactions that have not been fully approved and transfer the transaction(s) to WISER. “System Closed” transactions will be tracked by the Purchasing Card Program Manager and treated as non-compliance. Compliance measures will be taken for repeat offenders.
  3. Cardholders and site managers are required to complete the reconciliation process and provide the required receipts and supporting documentation for “System-Closed” transactions.
  4. The Purchasing Card Program Manager notifies the cardholder, site manager and Divisional Business Office of “System-Closed” transactions. The email notification includes the Purchasing Card Post-System Close Reconciliation Form referencing the details of the “System-Closed” transaction. The following steps must be completed within 14 days of receipt of this form.
  5. The cardholder provides a justification for missing the reconciliation deadline and signs the form, acknowledging the policy requirement. The cardholder provides the required business purpose and supporting documentation for the “System-Closed” transaction in the Purchasing Card module. The cardholder forwards the form to the site manager via email.
  6. The site manager provides a justification for missing the reconciliation deadline, reviews the provided supporting documentation and business purpose in the Purchasing Card module, and attaches the form to the “System-Closed” transaction in the Purchasing Card module.
  7. The Purchasing Card Program Manager reviews the “System-Closed” transaction to verify reconciliation is complete within 14 days.

IV. Contact roles and responsibilities

  • Cardholder: responsible for complying with purchasing card policy and procedures and managing the purchasing card account.
  • Site manager: responsible for reviewing all card activity to verify the cardholder provided all required documentation and adhered to purchasing card policies.

V. Definitions

  • Cardholder: the UW–Madison employee whose name appears on a purchasing card and who is responsible for all purchases made with that card.
  • Department Property Administrator (DPA): an individual in a department or division who serves as the liaison between that department or division and Property Control for all matters regarding capital equipment.
  • Site manager: the individual who manages purchasing cards at the departmental or divisional level.

VI. Related references

VII. Revisions

Procedure Number 3013.5
Date Approved May 8, 2017
Revision Dates July 9, 2020 – Increased tax tolerance level from $5 to $25
January 19, 2021 – Updated Procedure Number to 3013.5 from 300.5
December 11, 2021 – Purchasing Card Module implementation