E-7-19 Fleet Fuel Card

I. Purpose

To provide guidance to University faculty and staff to: 

• instruct how to request a fleet card
• define the use of the fleet card
• specify internal controls to safeguard the assets of the University and 
• help reduce and/or mitigate the risk of fraud within the University by maintaining segregation of duties. 

 Reminder: A key fob issued by the Martin-Gatton College of Agriculture, Food and Environment’s (M-G CAFE) fueling facility should be used to obtain fuel for University owned or leased vehicles in Lexington, Princeton or Versailles (contact college for instructions). When use of the key fob is not practical in Lexington, Princeton or Versailles, a fleet fuel card may be used to purchase gas from local filling stations. Fleet cards are also used to purchase fuel for the assigned vehicle when not available from local Fleet Services Fueling Stations. Only in the event of an emergency, can a procurement card (procard) be used to fuel a University owned or leased vehicle. In this instance, a leased vehicle does not refer to a rental car (e.g., through Enterprise or Avis); rather, it refers to a vehicle secured through Procurement Services’ long-term leased vehicle program. If a procard is used, a Request for Exception to Business Procedures form must be submitted to University Financial Services (UFS) for approval, justifying why the procard was used, and the approved Request for Exception to Business Procedures form must accompany the procard expense through Concur Expense. 

II. Definitions

1. Motor Vehicle Record (MVR) Release and Information Form: A form used by the University’s Risk Management department to obtain information about the driver to verify driving records of employees traveling on behalf of the institution. This form must be on file with the University’s Risk Management department before driving a University owned or leased, personal or rental vehicle for University business. 
2. Receipt:Fuel and roadside assistance receipts shall include vendor name, location, date of transaction, and amount charged to the fleet card. Roadside assistance receipts should also itemize services performed.
3. Roadside Assistance: Service that assists a motorist whose vehicle has suffered a mechanical failure that leaves the driver stranded. Examples include flat tire repair, new battery, fuel, or locked-out services. Roadside towing and repair services can be charged to the fleet card. Major vehicle repair work is considered maintenance and cannot be charged to the fleet card. If the University owned or leased vehicle breaks down on the road, call the customer service number on the back of the card to be connected to National Auto Club. Roadside assistance expenses can only be charged to the fleet card if the service is initiated by calling customer service on the back of the fleet card (not by calling AAA or any other roadside assistance service). 
4. Segregation of Duties: Internal control designed to prevent error and fraud by ensuring that at least two people are responsible for the separate parts of a task.  No one person should be responsible for performing all duties. 
5. Voyager Fleet Card: A U.S. Bank credit card that can only be used to pay for fuel or roadside assistance expenses for University owned or leased vehicles.

III. Policy

1. Card Request
   1. Initial setup of a unit/department’s fleet card program is requested through Accounts Payable Services. 
   2. After setup of a fleet card program, additional or replacement cards are requested by the unit/department’s fleet card account manager through U.S. Bank’s online software Fleet Commander. 
   3. Each fleet card is assigned to a University owned or leased vehicle (not assigned to an individual).
2.  Card Usage
   1. Fleet cards are used to purchase fuel for University owned or leased vehicles through local filling stations when using the key fob issued by the M-G CAFE is not practical within Lexington, Princeton or Versailles. The cards are also used to purchase fuel for the assigned vehicle outside of Lexington, Princeton or Versailles. The cards are issued by U.S. Bank.
   2. The fleet card can only be used to purchase fuel for the specific assigned University vehicle. The fleet card cannot be used to purchase fuel for personal vehicles or any vehicle other than the one designated. 
   3. Fleet cards must be safeguarded by the University unit/department or in the vehicles with limited access as designated by the fleet card account manager. Fleet card information must never be faxed, emailed, texted, or mailed to anyone (e.g., a vendor).
   4. The unit/department fleet card account manager plus one additional employee (as backup to the fleet card account manager) shall access U.S. Bank’s online software Fleet Commander to manage their unit/department’s fleet cards. Fleet Commander is the online software U.S. Bank uses for the fleet card program.
   5. Fleet cards cannot be used to obtain fuel from the M-G CAFE’s or Physical Plant’s fuel pumps. Fleet cards can only be used to purchase fuel from retail fuel filling stations.
   6. Fleet cards are embossed with the vehicle license plate number, department name, and sub-unit or any other information that is helpful to the unit/department.
   7. All drivers are assigned a driver ID, which is the last six digits of their University employee ID number. All registered drivers within an area can drive all vehicles/use cards within their fleet. At the fuel pump, drivers will be prompted to enter their driver ID and the odometer reading of the vehicle. 
   8. Each fleet card has a $1,000 fuel limit per monthly billing period and a limit of three transactions (fuel charges) per day.
   9. If the fleet card is denied, the driver should call the customer service number on the back of the card. Most often, the card is denied because the $1,000 fuel limit per billing cycle has been reached, the card has reached the limit of three transactions per day, or the driver does not enter their driver ID correctly. The driver ID is the last six digits of the University employee ID number. A Voyager Fleet Card customer service agent is authorized to approve either:
      1. A one-time only dollar amount for fuel or
      2. Another card transaction for that day. 
   10. Fleet cards cannot be used for vehicle maintenance.
   11. Roadside assistance is enabled on each fleet card. If a University owned or leased vehicle breaks down, call the customer service number on the back of the card to be connected to National Auto Club. Roadside assistance, towing service expenses, and/or necessary and reasonable repair expenses can be paid with the fleet card. Examples include flat tire repair, new battery, fuel, or locked-out services. Major vehicle repair work is considered maintenance and cannot be charged to a fleet card. Roadside assistance expenses can only be charged to the fleet card if the service is initiated by calling customer service on the back of the fleet card (not by calling AAA or any other roadside assistance service). 

 IV. Roles and Responsibilities

1. Accounts Payable Services 
   1. Oversees the University fleet card program
   2. Sets up and cancels/deletes fleet card programs for units/departments 
   3. Communicates with unit/department fleet card account managers 
   4. Maintains Fleet Fuel Card BPM and webpage 
   5. Acts as a campus liaison with U.S. Bank for the fleet card program 
2. Unit Protocols
   1. Appropriate segregation of duties within each unit/department will be established for managing fleet cards and approving and paying fleet card invoices
   2. Fleet cards will be safeguarded
   3. Vehicle and fleet card logs will be maintained within the unit/department to track card usage
   4. Fleet cards will automatically be reissued when they expire
   5. If a fleet card is lost or stolen, the phone number for calling customer service can be found on the back of another fleet card
   6. Fleet cards should be cancelled when the vehicle associated with the card is sold or the lease is terminated 

3. Unit/Department Fleet Card Account Manager

   For an area with a large amount of fleet card use, an account manager may assign some responsibilities to individual departments; however, the account manager remains fully responsible for the area’s fleet cards. Any delegation of responsibility must be in writing and signed by both the account manager and the department supervisor.  

   1. Ensures fleet cards are safeguarded
   2. Communicates with departments and areas regarding fleet card use and controls
   3. Identifies and advises Accounts Payable Services of segregation of duties
      1. Employee managing the fleet cards and making changes to the fleet cards/account
      2. Employee setting up PRD for payment of fleet card invoices
      3. Employee approving fleet card invoices for payment 
   4. Accesses Fleet Commander (U.S. Bank’s online software) to manage fleet cards and/or make changes to the cards – the account manager and departmental backup will be enrolled automatically in Fleet Commander
   5. Creates and maintains a vehicle and fleet card log for each vehicle and fleet card:
      1. Logs are maintained within the department and include the following information:
         1. Fleet card number assigned to vehicle
         2. Vehicle I.D. number as indicated in Fleet Commander
         3. Vehicle description
         4. Vehicle license plate number
      2. Logs will include blank spaces for employees to complete upon checking out/returning the vehicle and fleet card
         1. Date the vehicle and fleet card are checked out
         2. Driver I.D. of employee checking out the vehicle and fleet card
         3. Printed name and signature (space for each) of employee checking out the vehicle and fleet card
         4. Business reason and destination for use of the vehicle and fleet card
         5. Mileage of vehicle at checkout (should match the return mileage of previous entry on log)
         6. Signature of employee returning the vehicle and fleet card
         7. Date and mileage when vehicle returned
         8. Any vehicle problems (e.g., accident, operational issues)
   6. Reconciles and sets up fleet card invoices for payment (does not have to be the account manager or designee)
   7. Maintains Fleet Card logs with the account reconciliations in accordance with BPM E-17-6 Reconciliation and Review of Financial Transactions
   8. Contact’s Accounts Payable Services with questions   
4. Fleet Card User (Vehicle Driver)
   1. Ensures the driver’s license is valid and a Motor Vehicle Record Release and Information form is on file with the Risk Management department
   2. Reserves vehicle and fleet card via email, phone, or in person as designated by the fleet card account manager and provides date, time, business reason, and destination for use of the vehicle and fleet card
   3. Picks up/checks out the vehicle and fleet card from person designated by fleet card account manager and complete vehicle and fleet card log
      1. Date the vehicle and fleet card are checked out
      2. Employee driver I.D.
      3. Printed name and signature (space for each)
      4. Business reason and destination for use of the vehicle and fleet card
      5. Mileage of vehicle at checkout (should match the return mileage of previous entry on log)
   4. Fuels vehicle – slide card at fuel pump and follow prompts
      1. Enter driver I.D. (as assigned by fleet card account manager)
      2. Enter odometer reading
      3. If card is declined, call customer service number on back of card
      4. Obtain receipt
   5. Returns/checks in the vehicle and fleet card to person designated by fleet card account manager and completes vehicle and fleet card log
      1. Date the vehicle and fleet card are returned
      2. Signature
      3. Mileage of vehicle at return
      4. Vehicle issues (e.g., accident operation)
   6. Returns fuel and/or roadside assistance receipt(s) to person designated by fleet card account manager

5. Supervisor or Unit Delegate/Designee

   Has both authority and responsibility to review and authorize necessary and reasonable fuel and roadside assistance expenses. 

6. Business Officer 

   Has authority and responsibility for approving funding for University owned or leased vehicle fuel and roadside assistance. Expenses reside with the person responsible for the cost object to which the expenses will be charged. When approving funding, the necessity and reasonableness of the business travel expenses shall be considered.

V. References

BPM E-5-1 Reimbursement of Travel Expenses 

UKIA Fraud Reporting webpage 

UK Risk Management website