5.3.3 Purchasing Cards

Formerly Known As Policy Number: 54.5

This policy applies to expenditures from all university funding sources. For detailed procedures and resources, refer to the Purchasing Card (PCard) overview on Fingate. This policy aligns with Administrative Guide Memo 1.1.1: Code of Conduct, Guide Memo 5.1.1: Procurement Policies, and applicable federal regulations. 

Applicability:

This policy is applicable to direct purchases of:

• Business expenses, such as meals and entertainment expenses
• Purchases to be owned by the university

1. Purpose

Purchasing Cards (PCards) are university-liability credit cards issued to active and authorized employees to facilitate the purchase of eligible goods and services totaling $4,999 or less. The university offers a number of purchasing methods, such as iProcurement, which should be considered for overall impact on time-savings and the university’s ability to reduce costs and manage risk, compliance, and regulations. Using a PCard to purchase items should be limited to instances where there is substantial benefit, such as to support a more immediate business need or for purchasing categories, like business meals, that cannot be facilitated in iProcurement.

There are two types of PCards with specific uses:

• Individual PCard: Issued to and used only by a specific purchaser.
• Department PCard: Issued to a department and assigned to a custodian who can authorize others within the department to use it.

2. Roles and Responsibilities

For overarching roles and responsibilities in procurement activities, refer to Guide Memo 5.1.1: Procurement Policies. Specific roles and responsibilities related to PCards include:

• Purchaser:
  • The Individual PCard Cardholder or the Department PCard Custodian is responsible for all purchases made on the card, follows related policies, and provides applicable receipts and documentation.
  • To be issued a PCard, the individual completes the application process, which includes designating a guarantee account (PTA) and a transaction verifier, completing training, and obtaining appropriate approvals.
• Verifier:
  • The cardholder or another individual who is responsible for properly documenting and recording transactions in a timely manner, including disputing or reporting any potentially fraudulent transactions. Documentation must be attached, along with a business purpose and account (PTA) information.
  • Transactions verified later than 60 days after expenses are incurred (the credit card posted date) are treated as taxable income to the cardholder in accordance with the IRS Accountable Plan. If a PCard transaction remains unverified, the transaction will be force cleared to the specified guarantee account (PTA). Repeated failure to verify and approve PCard transactions may result in card suspension.
• Approver: PCard transaction approvers are granted appropriate approval authority for the PTA to which the PCard transaction is being charged. The approver may not report to the individual who made the purchase or be the beneficiary on whose behalf the purchase was made.
• School/unit management: Managers and financial approvers must monitor PCard usage, ensuring timely processing and compliance with policies.
• Central administration and oversight:
  • Financial Management Services (FMS) oversees transaction compliance and may suspend cards for non-compliance.
  • PCard transactions are subject to additional review by the Office of the Chief Risk Officer (Internal Audit and/or Ethics and Compliance) as well as external auditors.

Misuse 

PCard charges that are found to solely benefit the individual and/or are deemed excessive or fraudulent will be subject to further review and assessment by the appropriate office as outlined in Guide Memo 3.5.1: Financial Irregularities. Consequences of substantiated financial irregularities are addressed in Guide Memo 1.1.1: Code of Conduct.

3. Permissible and Non-Permissible Purchases

See Fingate for an expanded list of categories of permissible and non permissible purchases: 

• Permissible Purchases: Common items, such as office supplies, postage and mailing supplies, periodic dues and memberships to professional organizations, and business meals where no travel is involved.
• Non-Permissible Purchases: Items with specific compliance requirements such as hazardous chemicals, and moving, storage, and leasing expenses must utilize other purchasing methods. 

4. Exceptions

Exception requests to the PCard policy must first be approved by the appropriate VP/Dean’s office or designee.