Purchasing Cards

Overview

Accounting Services issues purchasing cards and hospitality cards to reduce reliance on petty cash reimbursements and purchase orders for low dollar, low volume, purchases. Purchasing cards may be authorized for use in certain other circumstances where purchase orders and direct invoicing are either impractical or impossible. Purchasing cards are not intended to be a routine substitute for purchase orders. The complete guidelines for purchasing card use are found in the P-Card Handbook. This page highlights those guidelines.

Responsibilities and Liabilities of P-Card Users

By accepting a purchasing card, a university employee agrees to comply with the following terms and conditions:

• All purchases made with a purchasing card will be made on behalf of and for the benefit of a University department, school, office or other University entity.
  
  
• Purchasing cards issued in the name of a specific University employee will only be used by that employee.
  
  
• All purchases will follow University purchasing policies and procedures, including providing documentation in order to perform the reconciliation process of the University purchasing card.
  
  
• All receipts, statements and other documentation related to card usage are University property and the University reserves the right to audit all records related to card usage.
  
  
• Purchases will not exceed the single transaction and billing cycle limits set for the card.
  
  
• Purchasing cards will be kept secure at all times by the individual in possession of the card.
  
  
• Cards that are lost or stolen will be immediately reported to Bank One and Accounting Services for cancellation.
  
  
• An employee issued a card in his or her own name, or designated as the responsible person for a check-out card will attend a training session on use of the purchasing card prior to being issued the card or named as a responsible person.
  
  
• Employees will not make personal purchases with the Purchasing Card and cardholder privileges may be revoked for such use.
  
  
• Employees agree to reimburse the University for any inappropriate charges made with cards in their posession, including expenses and charges incurred by the University in connection with such transactions.
  
  
• Fraudulent or intentional misuse of the card by the cardholder will result in revocation of the card, restitution and/or criminal charges. The University reserves the right to pursue all legal remedies available to it with respect to inappropriate card usage.
  
  
• The University reserves the right to revoke cardholder privileges at any time and without notice.
  
  
• The University may cancel a card at any time for reasons including, but are not limited to:
  • fraudulent or unauthorized use of a card, whether by an employee or other person;
  • termination of employment by the responsible person; change in position by the responsible person; failure to report a lost or stolen card.

General Purchasing Restrictions

Possession of a purchasing card does not give the user blanket authority to purchase. Users are expected to follow all established University policies, procedures, and restrictions when using their purchasing cards.

University Purchasing Policy

Guidelines Related to Specific Purchases

• General Guidelines
• Alcoholic Beverages
• Christmas Cards and other Seasonal Greetings
• Food for Human Consumption
• Food Service Equipment for Employee Use
• Furnishings
• Membership Fees and Dues
• Stationery
• Uniforms / Clothing

Restrictions on P-Card Use

Purchasing cards are intended for incidental purchases and circumstances where purchase orders or direct pays are not practical or possible. Purchasing cards are also available to facilitate hospitality-related purchases.

There are certain good and services for which a purchasing card cannot be used:

• Capital equipment
• Cash advances
• Controlled substances/items
• Cylinder gases
• Personal or non-business purchases
• Memberships
• Tax reportable services (IRS Form 1099-reportable services)
• Travel expenses*
• Entertainment Expenses

* The travel clerk in Accounting Services has a credit card for prepaying certain travel expenses.

Purchasing cards are covered by policies and procedures promulgated by Purdue University's Office of E-Commerce and Credit Card Operations (ECCO). These policies and procedures are implemented at IPFW by Accounting Services.

Documentation of P-Card Use

The University performs 100% review of purchasing card use. Every purchasing card transaction must be accounted for by the user. A Purchasing Card Reconciliation Voucher (PCR) is used to describe the purchase made, its business purpose, and the University funds to be charged for the purchase.

Applying for a Card

Departments desiring a purchasing card must complete an application and submit it through their business office for review and processing.

Individually Named Cards

Departments may request cards in the name of specific individual. This type of card carries full dispute rights with the bank, but may only be used by the individual named on the card.

Department Check-Out Cards

Departments may request cards in the name of the department or office. This type of card may be used by multiple individuals, but the bank does not permit us to dispute any charges. Department check-out are assigned to a responsible person in the department, whose job is to ensure that the card is signed-out each time it is used, that the card is returned with a valid receipt of the purchase(s) made, and that a purchasing card reconciliation voucher is prepared and submitted for each transaction. A sign-out log must be maintained, and is subject to audit.

Reconciliation

Every purchasing card transaction - including returns and credits - must be accounted for by a purchasing card reconciliation voucher, to which the original receipt is attached and submitted to the designated account clerk in Accounting Services or the department business office for reconciliation. The voucher and receipt should be completed and submitted within 48 hours after each purchase.

Missing receipts require completion of a missing receipt certification by the individual making the undocumented purchase.

Suspension / Revocation of P-Card Privileges

Departments that do not follow the procedures outlined above and all purchasing and purchasing card policies and procedures published here and elsewhere may have their purchasing card privileges suspended or revoked at the direction of the Comptroller.