Policies and Procedures

The Simpson College Procurement Card is an efficient, cost-effective method of purchasing. The program is designed to replace purchase orders and reduce use of petty cash or reimbursement for personal funds expended.

1 – Issuance of Card

The Procurement Card is issued by Simpson College in coordination with Wells Fargo. The card bears the Simpson College logo, the College’s Iowa sales tax exempt number, and the Cardholder’s name and identifying account number. The security code is the last three digits in the signature box on the reverse side of the card.

Effective June 2015 all cardholders have VISA procurement cards with Chip and Pin technology, which will reduce fraud and help prevent cloning of cards. Each time the card is used in a chip and pin terminal, the chip creates a new authorization code that cannot be reused. If a merchant does not have a chip and pin terminal, the card can still be swiped to complete the transaction.

All Cardholders must be a Simpson College faculty or staff member. The employee must complete a Simpson College Procurement Card Agreement , obtain appropriate Department Head and Cabinet Officer approvals, and return the completed Agreement to Procurement Services before the procurement card can be ordered. The transaction dollar limit shall be determined by the department chairperson. The monthly credit limit will be negotiated between the department head and Procurement Services. Purchases exceeding the transaction limit or monthly credit limit will be denied at the point of sale. Approved cardholders must attend a training session to pick up the procurement card in person and sign the back of the card upon receipt.

The number needed to activate your card is your 4-digit telephone extension.

Each Cardholder is responsible for:

  • Security of the card
  • Appropriate use of the card
  • Compliance with procedures for this program
  • Obtaining receipts for all purchases
  • Managing transactions online (assigning account numbers to the transactions, enteringdescriptions of purchases), monthly review of charges, and submitting your statement to your approver.

2 – Use of Card

The procurement card may be used to purchase items via telephone, in person, or Internet. If the Internet is the best source for ordering, the cardholder is responsible for determining the security of the site, which will have https in the address. When placing an order, give the sales tax exempt number and request that the order be tax exempt; give explicit shipping instructions, including name and department; and either ask for a receipt for documentation purposes to be sent directly to the cardholder or print a copy of the Internet order. For security reasons, care should be taken that others do not overhear or view the card information. Do not fax or email your credit card numbers to anyone.

When a procurement card is to be used for group travel or a group event, the cardholder is responsible for contacting Procurement Services in advance to arrange for adequate transaction and credit limits.

The following charges are not allowed:

  • Employee consumed alcoholic beverages
  • Cash advances
    •  (exception:  cash advances are allowed for leaders of  international May term trips and semester abroad trip leaders)
  • Controlled substances, prescription drugs, narcotics
  • Furniture/furnishings
  • Hazardous products
  • Leases/ Maintenance agreements
  • Personal items
  • Sales tax
  • Splitting purchases to circumvent the transaction limit
  • Telephones, fax machines, or related equipment or services
  • Trip Insurance
  • Car Rental Insurance Protection. This is covered under the Simpson College policy

3 – Tax Exemption

The Cardholder is responsible for ensuring all purchases are exempt from sales tax.The College’s Iowa sales tax exempt number is printed on each procurement card, and the Cardholder is responsible for ensuring that sales tax is not charged at the time of purchase. If sales tax is charged in error, the cardholder is responsible for contacting the vendor and requesting a credit back to the procurement card. A copy of the Iowa Sales Tax Exemption Certificate is available http://simpson.edu/wp-content/uploads/2012/08/Iowa-Sales-Tax-Exemption-Certificate1.pdf from Donna Gade, Accounts Payable.

Simpson is also tax exempt in the following states. Contact Logan Edel, Controller (x1579), for the necessary form for the state(s) where you will be traveling:

Colorado Need Colorado certificate of exemption
Florida Need Florida form
Illinois Need copy of letter from Illinois
Indiana Must apply exact time of travel
Kansas Need completed Kansas form
Maine Need completed Maine form
Massachusetts Need Massachusetts form
Michigan Need completed certificate at time of purchase
Minnesota Need completed Minnesota form
Missouri Need copy of letter from Missouri
New York Need completed New York form
Ohio Need completed Ohio form
Texas Need completed Texas form
Wisconsin Need Wisconsin form

The following states either do not have a general sales tax or do not allow sales tax exemption:

Alaska May need to pay city or local government taxes
Hawaii No sales tax, but a gross receipts tax
Montana No sales tax
New Hampshire Must pay meals and room tax
New Mexico No sales tax, but a gross receipts tax; use
Iowa form for exemption status
Oregon No sales tax

Tax exemption for meals: All meals catered or planned in advance must be tax exempt.

WalMart requires a gray identification card be presented prior to scanning any items so the order will be sales tax exempt. Wal-Mart I.D. cards are available from Procurement Services.  The new Chip and Pin cards require you know your PIN (Personal ID Number) to make Wal-Mart purchases.

4 – Receipts

It is the responsibility of the Cardholder to obtain an original receipt (cash register tape, paid invoice, restaurant ticket, or copy of Internet order) as documentation for every purchase. Scanned receipts are acceptable.

The receipt must include:

  • Purchase date
  • Vendor name
  • Transaction amount
  • Itemized description of item(s) purchased and associated pricing (note that the term “misc. items” is not adequate documentation)

All meals charged must have a business purpose. Receipts for meals must include the original charge card receipt AND the itemized restaurant ticket showing the food/beverage purchased. If meals for other individuals are included in the total to be charged to the college, enter the business purpose of the meal, names of guests and relationship to Simpson in the online description field for that transaction. That field allows 250 characters; if that space is inadequate, write names on the back of the receipt and state “see receipt for names” in description field. (This information is an IRS requirement so the meals are not taxed personally.)   Internal audit for meals includes reasonableness of purchase and alcohol.

5 – How to Manage your Account Transactions

The Wells Fargo Procurement card features on-line reconciliation and approval through their Commercial Card Expense Reporting software program. A Cardholder can view the account activity online at any time, enter account numbers and descriptions as well as confirm you have the required receipt.

  • Launch your web browser and go to the URL – https://www.wellsfargo.com. Click on the Commercial tab at the top, then click the Sign On button under Commercial Electronic Office Portal.
  • Company ID: Simps237
  • User ID: (will be provided at the time of training)
  • Temporary password: college34
  • Unique ID is your four-digit  telephone extension.  Use  for card activation, for setting your PIN (personal ID number), and for identification when calling Wells Fargo about your account

Refer to the Cardholder Quick Reference Guide for complete instructions. Also, a power point presentation will be e-mailed to you

Watch for e-mails from CCER. Do not delete them without reading. They will pertain to the procurement card program.

6 – Dates and Deadlines

  • Statement cutoff date is the 24th of the month (monthly credit limits are refreshed the next business day).  If the 24th of the month is on a weekend, the billing cycle will close the following Monday.
  • Cardholders who have made charges during that billing cycle  will receive an e-mail from CCER (Credit Card Expense Reporting) the day after the the billing cycle closes advising your statement is ready for review. If no charges are made during a billing cycle, no email notice will be received.
  • Statement must be reviewed and submitted electronically to your approver in the 9 calendar day period following the end of the billing cycle A reminder e-mail notice will be received two days before the statement review deadline. Remember to print off a finalized copy to submit with receipts to your approver.
  • An approval period of 6 calendar days has been established for Approvers to complete their approval process and submit for general ledger entry.
  • A copy of the monthly statement with receipts for all charges attached must be received by Denise Hudson in the Business Office by the 10th of the following month.
  • Deb White is responsible for downloading the transactions to the general ledger accounts.

Staple documents in the following order:

  •  Staple documents in the following order:
    • Copy of Visa statement
    • Original receipts (in the same order as charges appear on the statement)
    • Statements that are not completed or receipts that are not in date order will be returned to the cardholder for correction.

7 – Disputed Charges

Disputed charges are transactions that you have made but disagree with the amount billed or transactions which you did not make. Resolution must be initiated by the Cardholder WITHIN 60 DAYS OF THE STATEMENT DATE. Procedure is as follows:

  1. Call the vendor where the disputed transaction occurred and try to resolve the issue.
  2. If it is a charge you did not make or if you are unable to reach an acceptable resolution, select that transaction on-line and click on the dispute button and follow the instructions. Select the dispute reason, input your phone number, submit, and follow instructions in the message box.
  3. Notify Marilyn Leek of the disputed charge.
  4. Charge the amount to your default general ledger number.  It can take two to three billing cycles for the amount to be credited to your account.  Then use that same account number for the credit when it comes through on your account.

8 – Procurement Card Check-Out Procedures

Cardholders are allowed to check out their procurement card to students or other employees who do not have a card to make LOCAL purchases in person. Both the Cardholder and the person using the card must sign a Procurement Card Check-Out Authorization Form.

  • Cards cannot be permanently issued to or kept in the possession of students.
  • The Cardholder is responsible for all transactions on the card and for monitoring its activity.
  • All purchases are to be for business-related purposes; personal use of the card is strictly prohibited.
  • This card checkout procedure will allow students to make local purchases in person – no phone, fax or internet purchasing by students is permitted.
  • The person checking out the card must take the Authorization Form to the vendor when making the purchase, which allows signature verification of both the Cardholder and the student. It also sets a limit for the maximum dollar amount to be purchased.  If purchase is being made at Walmart, they must also take the gray ID card for tax exemption.
  • The signed receipt and the credit card.Walmart ID card must be returned to the Cardholder the same day as the purchase. The receipt must show the account number for departmental use or the name of program/organization and event for student use.
  • The Cardholder must reconcile all charges on the monthly statement with the transaction log and receipt for each purchase. The Supervisor must approve each monthly transaction log.

9 – Lost, Stolen or Misplaced Cards or Suspected Fraud –

Contact Marilyn Leek, Procurement Services, for assistance: 961-1675 or 249-3621

If a card is lost, stolen or misplaced, the Cardholder must immediately call Wells Fargo (800 932-0036, Option 1) and call Procurement Services. SUGGESTION: Enter this number in your cell phone so you will have it if needed!

If a charge is not legitimate and fraud is suspected, contact Wells Fargo (800 932-0036, Option 4 then 1) and begin the process to get your card replaced. Also, contact Procurement Services.

Should Wells Fargo detect a fraud attempt on your card, a caution flag will be placed on your account and  the card will be put in a suspended status.Charges will not be authorized on the card until Wells Fargo has been advised the charge in question is legitimate.

10 – Procurement Card Program Violations

The Cardholder is responsible for and accountable to Simpson College for all charges made with his or her procurement card and for obtaining receipts for all charges. The Cardholder is strictly prohibited from using his or her procurement card for personal use.

Examples of violations include:

  • Purchases attempted outside of a Cardholder’s pre-defined spending parameters
  • Non-business related purchases
  • Splitting purchases to circumvent transaction limits
  • Inadequate, incomplete or otherwise unacceptable documentation
  • Late submission of payment reconciliation and approval

Repeated violations may result in notification to supervisor or loss of procurement card privileges and could lead to additional disciplinary action including termination of employment.

11 – Cancellation of Card

Cards must be immediately canceled if the Cardholder terminates employment or assumes duties that do not require use of a procurement card. To cancel a card:

  • Cut the card in half and return it to Procurement Services.
  • Notify Procurement Services in writing. Procurement Services will cancel the card with Wells Fargo.

12 – Inquiries or Assistance

For inquires or assistance from Procurement Services, call Marilyn Leek, Director of Procurement, (X1675 or 249-3621) who is the Procurement Card Administrator. In her absence, please contact Cathy Hoch, Vice President of Business Services (X1398).