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P-CARD NEWS

Welcome to the P-Card News page. We will post here recent news and announcements pertaining to P-Card procedures, policies, and initiatives. Key policy and procedure changes will also be communicated to the University community via targeted email messages and Customer Forums. We invite you to check back here often to read “What’s New” in the P-Card Program.

Accounts Payable Process for Check Handling
Effective August 15, 2009, the U-M Accounts Payable Office will no longer process checks for monies owed to the University.   Checks should be deposited by the unit directly through the depository process (identified below by campus), and a copy of the cash receipt confirmation should be attached to the P-Card or Travel and Business Hosting Expenses statement as proof of deposit. Note: Deposits for repayment of funds received through a travel advance must use account value 122400. The remainder of the ChartFields must match those on the advance request. Contact Accounts Payable for appropriate ChartField values if you are reconciling a lump sum advance or closing out an imprest cash fund.

This change in procedure reduces the risk of having the check applied to the wrong ChartFields—and so fewer journal entries are needed to correct those errors. Deposits are processed and credited to your account more quickly. And, it is more secure.

Please read below to identify the proper method for check deposit for your Campus:

Ann Arbor and North Campuses:

Ann Arbor Campus units should use the cash and check depository process established by the Bank Restructuring Team within the Treasurer’s Office. Most Ann Arbor units have already converted to this process. For more information on the cash and check depository process, contact Treasury@umich.edu.

Medical Campus:

Medical Campus units should continue to use their current process. Most use the Hospital Cashier’s Office; however, a few units are using the Treasury depository process.

Hospital and Health System:

Check deposits should be made through the Hospital Cashier’s Office.

Dearborn Campus:

Check deposits should be made through the Dearborn Cashier’s Office.

Flint Campus:
Flint Campus units should continue to submit checks to the Flint Office of Financial Services and Budget.
P-Card Fraud

P-Card fraud occurs when a credit card is used without authorization. This is not the same as a “disputed charge.” A disputed charge is one that the cardholder believes the merchant has submitted in error; the cardholder works with the merchant to resolve the transaction error.

New Online P-Card Approver Course

On June 3, 2008, Procurement Services launched a new online course for P-Card Approvers. (P-Card Approver Course)

The course has been implemented in order to address a finding that the biggest gap in the control points in the P-Card process is the P-Card Approver role. Previously, the person designated as P-Card Approver has not been required to complete a training course or to sign a statement attesting to their knowledge of the responsibilities of a P-Card Approver. Training ensures that Approvers are aware of the relevant policies and guidelines and have the appropriate knowledge and skills needed to approve cardholder transactions.

At this time, course completion will not be tracked through a system process or database. Rather, the Approver signature line on the P-Card Statement will include an attestation that the person signing as Approver has completed the training.   The attestation will appear on the P-Card statement beginning August 2008. This should allow current Approvers sufficient time to complete the training.

Procurement Services, the Office of University Audits, and the Office of Internal Controls collaborated to develop the course.   Additional content reviewers included Approvers from units and departments across all campuses. All Approvers—current and new—are required to complete the training.   The course is available 24/7 on the Procurement Services web site under How to Pay > P-Card > Resources. Access to the course does not require an M-1 form or authenticated login.

Recent Changes in P-Card Program Policies and Procedures

Some significant business process issues emerged from the implementation of the GE Purchase Card program last spring, which prompted a thorough analysis of the then current P-Card policies and procedures. Procurement Services has worked closely with the Offices of University Audits and Internal Controls over the past several months to develop these policy and procedural changes.

The changes involve four issues. Each issue and the resulting actions are described below:

Issue 1. Incomplete/Incorrect P-Card Statements Received in Accounts Payable. Some inbound P-Card statements received in Accounts Payable each month are incomplete or have errors (for example, missing Approver and/or Cardholder signature; missing required forms; expenditures that cross different P-Card billing cycles, etc.). To improve the efficiency of the statement audit process, the P-Card Group now returns to the department for correction all P-Card statements that are incomplete or have errors.

Action: A cover sheet identifying the problem area(s) and how to correct them is attached to the incomplete/incorrect P-Card statement. Corrected statements received by Accounts Payable are then imaged and available for the normal audit process.

Issue 2. Merchant Category Code (MCC) Privileges. An MCC is selected by a merchant to categorize the type of commodity or service they provide. In theory, restriction of these codes allows the University to tighten controls on Cardholder spending abilities. However, an analysis of the Cardholder privileges based on authorized MCC groupings showed that most P-Card holders have the same privileges. Thus, there is an opportunity to increase efficiencies within the P-Card Group by broadening access to all MCC privileges for all P-Card holders, while also presenting an insignificant increase in risk to the University.

Action: Procurement Services has revised the current MCC privileges to allow access to the four major MCC tables: UMCASH, UMSUPPLIES, UMTRAVEL and UMHOSTING. Note that UMCASH privileges for current P-Card holders who have not previously had access to cash have their cash withdraw amount set to $0 (zero), which will prevent them from using the cash advance/ATM withdraw feature on their P-Card. Further, the P-Card Application and the P-Card Limit Change Form have been updated to include a predetermined list of appropriate justifications to be eligible for cash advances (Extensive Travel; International Travel; responsible for Subject Fees).

Issue 3. Cash Advance/ATM Withdraw Profile Limits. Following investigation with GE, and through study of other benchmark research, it was found that most entities who have a Purchasing Card program with cash advance/ATM withdraw privileges do not use the daily withdraw limit. Use of the daily limit caused increased maintenance issues for the Accounts Payable/P-Card Customer Service team and GE Customer Service. And, with a daily limit in place, cardholders who required significant amounts of cash on hand (e.g., for subject fee payments) had to make several trips a week to the bank to withdraw cash, only to reconcile it monthly to the P-Card statement.

Action: The daily withdraw limit has been eliminated, with the monthly withdraw limit serving as the control point. This change does not increase risk to the University, because PINs are required for each withdraw and a lost card cannot be compromised such that a large cash amount could be withdrawn by someone other than the cardholder.

Issue 4. Credit Limit Change Requests. Previously departmental requests for changes in P-Card credit limits were identified on the P-Card Maintenance Form and sent to the Accounts Payable P-Card Group for review and processing.

Action: A new policy has been established to ensure consistent and accurate increasing and decreasing of P-Card credit limits. Monthly credit limit increases and decreases are now requested through the P-Card Limit Change Form. Requests for increases in excess of $10,000 per month require approval from Procurement Services Leadership and must include a detailed justification from the P-Card holder. In all instances, temporary (e.g., two months) credit limit increases will be pursued, rather than permanent increases in credit limits.

If you have questions about these issues—or any P-Card policies and procedures—please contact the P-Card Group at purchcard@umich.edu or Accounts Payable Customer Service at 734-764-8212.

University of Michigan Procurement Services, 3003 South State Street, Ann Arbor, MI 48109 Phone 734-764-8212
Copyright © 2007 the Regents of the University of Michigan



FAQs Contacts Green Purchasing Made in Michigan Glossary Forms For Suppliers MSupplier Portal		P-CARD NEWS Welcome to the P-Card News page. We will post here recent news and announcements pertaining to P-Card procedures, policies, and initiatives. Key policy and procedure changes will also be communicated to the University community via targeted email messages and Customer Forums. We invite you to check back here often to read “What’s New” in the P-Card Program. Accounts Payable Process for Check Handling Effective August 15, 2009, the U-M Accounts Payable Office will no longer process checks for monies owed to the University. Checks should be deposited by the unit directly through the depository process (identified below by campus), and a copy of the cash receipt confirmation should be attached to the P-Card or Travel and Business Hosting Expenses statement as proof of deposit. Note: Deposits for repayment of funds received through a travel advance must use account value 122400. The remainder of the ChartFields must match those on the advance request. Contact Accounts Payable for appropriate ChartField values if you are reconciling a lump sum advance or closing out an imprest cash fund. This change in procedure reduces the risk of having the check applied to the wrong ChartFields—and so fewer journal entries are needed to correct those errors. Deposits are processed and credited to your account more quickly. And, it is more secure. Please read below to identify the proper method for check deposit for your Campus: Ann Arbor and North Campuses: Ann Arbor Campus units should use the cash and check depository process established by the Bank Restructuring Team within the Treasurer’s Office. Most Ann Arbor units have already converted to this process. For more information on the cash and check depository process, contact Treasury@umich.edu. Medical Campus: Medical Campus units should continue to use their current process. Most use the Hospital Cashier’s Office; however, a few units are using the Treasury depository process. Hospital and Health System: Check deposits should be made through the Hospital Cashier’s Office. Dearborn Campus: Check deposits should be made through the Dearborn Cashier’s Office. Flint Campus: Flint Campus units should continue to submit checks to the Flint Office of Financial Services and Budget. P-Card Fraud P-Card fraud occurs when a credit card is used without authorization. This is not the same as a “disputed charge.” A disputed charge is one that the cardholder believes the merchant has submitted in error; the cardholder works with the merchant to resolve the transaction error. New Online P-Card Approver Course On June 3, 2008, Procurement Services launched a new online course for P-Card Approvers. (P-Card Approver Course) The course has been implemented in order to address a finding that the biggest gap in the control points in the P-Card process is the P-Card Approver role. Previously, the person designated as P-Card Approver has not been required to complete a training course or to sign a statement attesting to their knowledge of the responsibilities of a P-Card Approver. Training ensures that Approvers are aware of the relevant policies and guidelines and have the appropriate knowledge and skills needed to approve cardholder transactions. At this time, course completion will not be tracked through a system process or database. Rather, the Approver signature line on the P-Card Statement will include an attestation that the person signing as Approver has completed the training. The attestation will appear on the P-Card statement beginning August 2008. This should allow current Approvers sufficient time to complete the training. Procurement Services, the Office of University Audits, and the Office of Internal Controls collaborated to develop the course. Additional content reviewers included Approvers from units and departments across all campuses. All Approvers—current and new—are required to complete the training. The course is available 24/7 on the Procurement Services web site under How to Pay > P-Card > Resources. Access to the course does not require an M-1 form or authenticated login. Recent Changes in P-Card Program Policies and Procedures Some significant business process issues emerged from the implementation of the GE Purchase Card program last spring, which prompted a thorough analysis of the then current P-Card policies and procedures. Procurement Services has worked closely with the Offices of University Audits and Internal Controls over the past several months to develop these policy and procedural changes. The changes involve four issues. Each issue and the resulting actions are described below: Issue 1. Incomplete/Incorrect P-Card Statements Received in Accounts Payable. Some inbound P-Card statements received in Accounts Payable each month are incomplete or have errors (for example, missing Approver and/or Cardholder signature; missing required forms; expenditures that cross different P-Card billing cycles, etc.). To improve the efficiency of the statement audit process, the P-Card Group now returns to the department for correction all P-Card statements that are incomplete or have errors. Action: A cover sheet identifying the problem area(s) and how to correct them is attached to the incomplete/incorrect P-Card statement. Corrected statements received by Accounts Payable are then imaged and available for the normal audit process. Issue 2. Merchant Category Code (MCC) Privileges. An MCC is selected by a merchant to categorize the type of commodity or service they provide. In theory, restriction of these codes allows the University to tighten controls on Cardholder spending abilities. However, an analysis of the Cardholder privileges based on authorized MCC groupings showed that most P-Card holders have the same privileges. Thus, there is an opportunity to increase efficiencies within the P-Card Group by broadening access to all MCC privileges for all P-Card holders, while also presenting an insignificant increase in risk to the University. Action: Procurement Services has revised the current MCC privileges to allow access to the four major MCC tables: UMCASH, UMSUPPLIES, UMTRAVEL and UMHOSTING. Note that UMCASH privileges for current P-Card holders who have not previously had access to cash have their cash withdraw amount set to $0 (zero), which will prevent them from using the cash advance/ATM withdraw feature on their P-Card. Further, the P-Card Application and the P-Card Limit Change Form have been updated to include a predetermined list of appropriate justifications to be eligible for cash advances (Extensive Travel; International Travel; responsible for Subject Fees). Issue 3. Cash Advance/ATM Withdraw Profile Limits. Following investigation with GE, and through study of other benchmark research, it was found that most entities who have a Purchasing Card program with cash advance/ATM withdraw privileges do not use the daily withdraw limit. Use of the daily limit caused increased maintenance issues for the Accounts Payable/P-Card Customer Service team and GE Customer Service. And, with a daily limit in place, cardholders who required significant amounts of cash on hand (e.g., for subject fee payments) had to make several trips a week to the bank to withdraw cash, only to reconcile it monthly to the P-Card statement. Action: The daily withdraw limit has been eliminated, with the monthly withdraw limit serving as the control point. This change does not increase risk to the University, because PINs are required for each withdraw and a lost card cannot be compromised such that a large cash amount could be withdrawn by someone other than the cardholder. Issue 4. Credit Limit Change Requests. Previously departmental requests for changes in P-Card credit limits were identified on the P-Card Maintenance Form and sent to the Accounts Payable P-Card Group for review and processing. Action: A new policy has been established to ensure consistent and accurate increasing and decreasing of P-Card credit limits. Monthly credit limit increases and decreases are now requested through the P-Card Limit Change Form. Requests for increases in excess of $10,000 per month require approval from Procurement Services Leadership and must include a detailed justification from the P-Card holder. In all instances, temporary (e.g., two months) credit limit increases will be pursued, rather than permanent increases in credit limits. If you have questions about these issues—or any P-Card policies and procedures—please contact the P-Card Group at purchcard@umich.edu or Accounts Payable Customer Service at 734-764-8212.
		University of Michigan Procurement Services, 3003 South State Street, Ann Arbor, MI 48109 Phone 734-764-8212 Copyright © 2007 the Regents of the University of Michigan