LOYOLA MARYMOUNT UNIVERSITY …

                                         LOYOLA MARYMOUNT UNIVERSITY
                                        POLICIES AND PROCEDURES MANUAL

DEPARTMENT: CONTROLLER'S OFFICE

SUBJECT: UNIVERSITY PURCHASING CARD (P-CARD) POLICY                                     Page 1 of 6

Policy Number: B&F                                          Supersedes:    April 2005

 Effective Date: September 2006
                                                        Previous Issued:   N/A




1. STATEMENT OF POLICY:
   This policy outlines the definitions, responsibilities, procedures, and guidelines for the issuance and use
   of a Loyola Marymount University Purchasing Card.

   Cardholders and their supervisors must comply with this policy; failure to comply with the policy and
   procedures herein will result in suspension or termination of Purchasing Card privileges and may result in
   disciplinary action.


2. DEFINITIONS:


       2.1 Purchasing Card (P-Card): A charge card issued to an individual for the purpose of making
       authorized purchases on the University's behalf. The University will issue payment for charges
       made with the P-Card.

       2.2 Cardholder: A person to whom a University P-Card has been issued. The Cardholder is
       accountable for all charges made with the P-Card. A Cardholder may or may not be a
       Reconciler.

       2.3 Department Manager. The person that is responsible for approving spending limits (see 2.7
       & 2.8) and assigning the Approver. Generally, this will be the operational department manager
       (e.g. Registrar, Director of Athletics, Dean).

       2.4 Approver: The person that is responsible for charges to a particular account. The
       Department Manager may be or may designate an individual as an Approver.

       2.5 Reconciler: The person assigned to review a Cardholder's monthly charges and to ensure
       that charges are supported by proper documentation (see 2.12). A Cardholder may be his or her
       own Reconciler, and a Reconciler may manage more than one Cardholder's account. A
       Reconciler may or may not be a Cardholder.

       2.6 Program Administrator: University employee responsible for administering the P-Card
       Program for the University and acting as the main contact between the University and the Bank.

       2.7 Transaction/Charge Limit: A dollar limitation of purchasing authority assigned to the
       Cardholder for each individual charge made with the P-Card.
SUBJECT: University Purchasing Card (P-Card)                                         Page 2 of 6


      2.8 Monthly Spending Limit: A dollar limitation of purchasing authority assigned to the
      Cardholder for the total of all charges made during each monthly billing cycle.

      2.9 Daily Transaction Limit: A daily limitation on the number or transactions in one day
      (generally 12).

      2.10 Statement of Account: A listing of all transactions charged to the Cardholder's P-Card
      account for the monthly billing cycle. Cardholders will print this on-line statement, attach
      supporting documentation and submit to reconciler. Cardholders may view their transactions on-
      line daily.

      2.11 Default Account: The University account number assigned to an individual Cardholder's
      P-Card. Only one default account can be assigned to any one P-Card and all charges made
      with the P-Card will be posted into that default account until reallocated.

      2.12 Support Documentation: A vendor-produced original or non-University document that
      records the relevant details for each item purchased including quantities, amounts, a description
      of what was purchased, the total charge amount and the merchant's name and address (e.g.
      sales receipt, original invoice, packing slip, credit receipt, etc.).

      2.13 Preferred Vendor: A vendor that has offered special pricing or terms to the University.

      2.14 Business Purpose: Statement of justification that expense is directly connected with the
      performance of cardholder duties (e.g. recruiting lunch).

      2.15 Travel Expense Report: University's standard form that documents expenses associated with
      business travel for approval by the employee's supervisor.

      2.16 Rebate: The return of all or part of an amount paid for goods or services.
                                       LOYOLA MARYMOUNT UNIVERSITY
                                      POLICIES AND PROCEDURES MANUAL

DEPARTMENT: CONTROLLER'S OFFICE

SUBJECT: UNIVERSITY PURCHASING CARD (P-CARD) POLICY                                    Page 3 of 6

Policy Number: B&F                                        Supersedes:     April 2005

Effective Date: September 2006
                                                      Previous Issued:    N/A



  3. POLICY/PROCEDURE:

      RESPONSIBILITIES:


  Cardholder Responsibilities

  Prior to receiving a P-Card the cardholder must attend a training session and must also read and sign the
  LMU Purchasing Card Cardholder Agreement. Full liability of payment for purchases made with the P-
  Card rests with the University, however the Cardholder is responsible for all purchases made with their
  assigned card. The Cardholder is responsible for obtaining necessary approvals before using the card to
  purchase goods or services and for following the guidelines for purchasing set forth below. Once a
  purchase is made, the Cardholder is responsible for confirming goods received, match the order, and
  retaining original documentation with the monthly statement for audit review of statement. Cardholders are
  responsible for safeguarding the card as if it were cash and must notify the bank immediately if the card is
  lost or stolen.

  Approver Responsibilities

  Approvers will be responsible for reviewing purchases for propriety and accuracy of the General Ledger
  Account on a monthly basis. Cards will be set up to post charges to default general ledger accounts for a
  respective department. However, approvers will have the responsibility to correct or change transaction
  coding within their department prior to the end of the monthly cycle. Charges may be split among several
  budget accounts within the department or with other departments. Only Cardholders and Approvers will
  have the authorization to split charges. Approvers are responsible for collecting P-Cards from cardholders
  who are separating from the University and returning them to the P-Card administrator. The LMU
  Purchasing Card Surrender Form should be completed and signed by the appropriate budget manager
  indicating receipt of the card from the separating Cardholder. Upon a Cardholder's separation from the
  University it becomes the Approver's responsibility to maintain the support documentation retained by the
  Cardholder.

  Purchasing Card Program Team Responsibilities

  The Purchasing Card Program Team (PCPT) is responsible for the ongoing maintenance of the program
  including responsibilities to:

      ·   provide training to administrators and cardholders
      ·   distribute the cards
      ·   interact with the bank to add, change, and delete cardholders
      ·   issue and update cardholder policy & procedures
SUBJECT: University Purchasing Card (P-Card)                                        Page 4 of 6


      ·     monitor purchases for compliance & propriety
      ·     monitor the departmental approval of billing statements
      ·     analyze purchase trends
      ·     facilitate resolution of disputed charges


  Program Administrator: Gunita Chopra, Controller's Office (Westchester)
                         Marti Reynolds, Finance Suite (Law School)

      P-Card Usage Guidelines

      The P-Card may be used for any purchase in the normal course of business within departmental
      budget guidelines. Misuse of the P-Card may result in revocation of card privileges, disciplinary
      action, termination and/or criminal prosecution.


      P-Card Limits

      P-Card dollar and volume limits are tailored to the Cardholder's expected use of the P-Card. Certain
      types of vendors and transactions are blocked as it has been determined that they would not apply to
      the University's operations. Specific P-Card limitations will be explained to each cardholder in the
      course of cardholder training. Each P-Card will be classified in the system with a pre-assigned
      template number associated with a common transaction and monthly limit:

                            #1........$250/transaction, up to $1,500/month

                            #2........$1,500/transaction, up to $20,000/month

                            #3........$2,500/transaction, up to $25,000/month

                            #4........on a case by case basis


      Procedures

      3.1       P-Card Distribution & Activation

      An employee may receive a P-Card upon approval from their Department Head and completion of the
      LMU Purchasing Card Application. The application and approval process can usually be accomplished
      within 5 business days.


      3.2       General Instructions for Cardholders to Make a Purchase

               ·   Place order and make purchase with preferred vendor (website, telephone, fax or on-site)
               ·   Receive goods or services
               ·   Review monthly cardholder statement within five business days of month-end
               ·   Notify vendor of discrepancies; follow-up any credits or rebates due
SUBJECT: University Purchasing Card (P-Card)                                           Page 5 of 6



      3.3       Documentation Requirements

      The department is responsible for maintaining records of every transaction made with the P-Card.
      These records must be reconciled to the monthly statement each billing cycle (30 days). The following
      items constitute proper documentation:

            ·   Vendor supplied detailed list of items purchased
            ·   E-mail orders, acknowledgements or confirmations which include vendor name, transaction
                date, detailed list of items purchased, dollar amount for each item and sales tax.

      All supporting documentation must be attached to the monthly statement and signed by the Reconciler
      or Approver.

      The statement and supporting documentation must be submitted to P-Card Administrator, Finance
      Suite, Founders Hall 125 the second week of each month.


      3.4       Review of Expenditures

      Each month the Cardholder is responsible for reviewing the expenditures charged to their P-Card. This
      review occurs on-line and is documented on-line. A business purpose must be entered on-line for each
      transaction. Transactions should be reviewed weekly. Cardholder and Approver are notified by e-mail
      that transactions are ready for review and approval.


      3.5       Disputed Charges

      Any charge that appears on the monthly statement may be disputed if it is an error. If there is a charge
      that is not recognized or appears to be incorrect, first contact the vendor and try to resolve the dispute.
      If an agreement cannot be reached, the Cardholder should go to the website (www.paymentnet.com)
      and complete a Disputed Charge form within 60 days of transaction date. The bank will then contact
      with the vendor and attempt to resolve this dispute within the billing cycle.


      3.6       Returns, Credits, Exchanges & Rebates

      It is the responsibility of the Cardholder to contact the merchant when merchandise purchased with the
      P-Card is received that is defective or incorrect. The Cardholder must arrange for a return for credit or
      an exchange.

      If a return for credit is made, it is the Cardholder's responsibility to obtain a receipt from the merchant
      and maintain this credit receipt with the original support documentation for the purchase. The refund
      must be credited to the same P-Card on which the original purchase was made. It is strictly prohibited
      for a Cardholder to accept a refund in the form of cash or check.

      If an exchange is made, the Cardholder is responsible for returning the merchandise to the merchant
      and obtaining a replacement. Documentation supporting this exchange should also be maintained with
      the support documentation for the original purchase.
SUBJECT: University Purchasing Card (P-Card)                                          Page 6 of 6


      Cardholders may at times purchase items for which a manufacturer or vendor rebate is available. In
      this case, it is the responsibility of the department or Cardholder to follow the appropriate procedures to
      receive the rebate. No Cardholder or University Staff will be allowed to profit personally from a rebate.
      All rebates must be deposited with the University Cashier crediting the account charged for the original
      purchase.

      It is preferred that rebate checks be payable to the University. If the check is payable to the purchaser,
      it must be endorsed to the University. Rebates in the form of certificates or gift cards must be returned
      to the card coordinator to be used for future purchases.

      It will be the responsibility of the Approver to review any rebate activity when approving the
      Cardholders' statements.


      3.7     Lost, Stolen or Damaged Cards

      If your P-Card is lost or stolen, notify the bank immediately by calling 1-800-270-7760.
      Representatives are available 24 hours a day, 7 days a week. Next, notify the P-Card
      Program Administrator, Marti Reynolds at extension 1020. Your card will be immediately suspended to
      protect against unauthorized use and you will be supplied with a new card. If a card is found after
      being reported lost, the canceled card should be cut in half and both halves forwarded to the Program
      Administrator. If your P-Card is damaged, notify the program administrator and he or she will arrange
      to cancel your current card and issue a new card. Canceled cards should be cut in half and forwarded
      to the Program Administrator.


      3.8     Returning the Card Upon Separation from the University

      Prior to separation from the University, cardholders must surrender their P-Card to either their Approver
      or the Program Administrator. To release the cardholder from responsibility for the card, the Approver
      must complete the LMU Purchasing Card Surrender Form. When someone other than the Approver
      accepts the P-Card from the separating employee, s/he must complete this form and sign it. The
      separating employee should be asked to sign this form as well.


      3.9    California Sales & Use Tax Guidelines

      Although LMU is tax exempt on its income, all purchases made by LMU are subject to sales and use
      tax. Taxes should be included in the cost of all purchases; if erroneously not included in the purchase
      total, the tax liability will be calculated, accrued and charged to the cardholder's general ledger account.
SUBJECT: University Purchasing Card (P-Card)   Page 7 of 6


Last reviewed by:                                 Date:
Approved by:                                      Date:
Denied/Postpone:                                  Date:
Notes: