Purchasing Card

P-Card Forms

Please make arrangements to pick up your Purchasing Cards -
Monday through Friday - between the hours of 9 A.M. and 5 P.M.

Purchasing Card Policies and User Guidelines

1.0 Definitions and Program Overview

:The Purchasing Card system has been established to provide a convenient means with which to make purchases of low dollar items, while at the same time containing the costs associated with the procurement of these items.

Purchasing Card: A charge/credit card issued to an employee of Utah State University for the purpose of making authorized purchases on the University’s behalf. The University will issue payment for authorized charges made with the Purchasing Card.

Cardholder: An employee of Utah State University responsible for expending University funds, whose name appears on the Purchasing Card and who is accountable for all charges made with the card. P-Card statements must be reconciled monthly and signed by the Cardholder and an Administrative Reviewer.

Card Administrator/Business Office Personnel (BOP): The University employee(s) within each department responsible for verifying that all charges against the Cardholder’s account are backed up by itemized invoices/receipts and said documentation is retained within the department. Card Administrators are responsible to ensure charges are allocated to the appropriate Index Number (previously accounts) and accounts (previously sub-codes). The Card Administrator will initiate journal entry corrections to reallocate original posting of purchases on the Purchasing Card to multiple Indexes or accounts.

The Card Administrator/ BOP is responsible for receiving and disseminating Purchasing Card information within the department and for relaying Purchasing Card information from within the department to the Program Administrator. They will ensure that reconciled the Purchasing Card Statements of Account and all support documentation are filed and retained for 5 years from the statement date.

Independent Reviewer: The employee(s) in Purchasing Services responsible for sampling and testing Purchasing Card transactions to verify that they are appropriate and supported by adequate documentation.  The Independent Reviewer will be authorized to objectively question any and all Cardholder purchases.

Administrative Reviewer:  P-Card statements must be reconciled monthly and signed by the Cardholder and an Administrative Reviewer.

Internal Audits: Performs selected reviews of all purchasing card transactions

Program Administrators: The Purchasing Services’ employees responsible for administering the Purchasing Card program for the University and to act as the main contact between the University and the Purchasing Card provider.

Transaction/Charge limit:  A dollar limitation of purchasing authority assigned to the Cardholder for each total charge made with the Purchasing Card.  This amount must not exceed $2,000 per purchase.   If desired, departments may establish lower limits for a given Cardholder.  Splitting orders to remain under the cardholder single transaction limit is not allowed.  No exceptions will be made.

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.  This amount will be set by each department or administrative area, but cannot exceed $15,000 per billing period.

Statement of Account:  A listing of all transactions charged to the Cardholder’s account through the end of the monthly billing cycle.  For all off campus transactions, the Procurement Card Provider (US BANK) sends a statement, directly to the Cardholder on a monthly basis.  A monthly statement of all on campus purchasing card expenditures is disseminated, at the end of each month, by the Controller’s Office.

Default Index:  The University FOAPAL assigned to an individual Cardholder’s Purchasing Card.  Only one Default Index can be assigned to a given Purchasing Card and all charges made with the Purchasing Card will be posted to that Default Index.

Support Documentation:  A merchant produced or non-University document that records the relevant details for each item purchased, including: date, quantities, amounts, a description of what was purchased, the total charge amount and the merchant’s name and address (e.g. sales receipt, itemized invoice, packing slip, credit receipt, etc.).  The approved “Missing Receipt Form” may be used as support documentation under special circumstances if the original transaction receipt is not available.  The record retention for all Purchasing Card transactions is 5 years from the statement date.

2.0 Applicable Procurement Card Policies

2.1 Issuance: 

All cards are issued per Utah State University Procurement Rules and Regulations. 

2.2 Auditing:  Card usage will be audited and any mis-use of the card may result in card cancellation, disciplinary action, termination of employment and legal action by the University.

THE CARDHOLDER IS RESPONSIBLE FOR ALL

PURCHASES MADE ON THE PURCHASING CARD

2.3 Card Ownership and Usage:

All proposed cardholders must attend the required training before card issuance.

The cardholder is the individual responsible for expending University controlled funds.

The Cardholder must sign all Purchasing Card transaction itemized receipts.

Cards are non-transferable from one individual to another.

The user’s department must retain support documentation for each transaction.

P-Card statements must be reconciled monthly and signed by the Cardholder and an Administrative Reviewer.

For any on-campus transaction over $5,000:  The cardholder must obtain prior written authorization from their Department Head or Senior Level Administrator

2.4 Restrictions and Authorized Card Use:

All restrictions will be set up and administered through the Purchasing Card Program Administrators in Purchasing Services.  Departmental dollar levels should be established at the time of application and can be modified if necessary at a later date.

Using the Purchasing Card to obtain items for personal use or for non-University purposes is not allowed, even if the Cardholder intends to reimburse the University.  The card may not be used for University Employee travel related expenses, i.e. lodging and food, including the University Inn.  All travel expenses are to be processed on a Travel Authorization.

Gifts and Gift Certificates – see USU Policy Number 505:  Employee Gifts and Awards:  USU Policy Number 505

Cardholders are authorized to use the Purchasing Card to purchase merchandise or allowed services, as required as a function of their duties at the University, from any off campus supplier with the exception of the following:

• Unapproved printing or imprinting (includes T-shirts, hats, key chains, etc.)  (Printing approval should be obtained from Public Relations, at 797-1351, PRIOR to placing any order.)
• Travel expenses: including alcoholic beverages, hotels and/or other lodging, vehicle rentals, airline and/or other travel tickets
• To set up blanket, open or standing orders
• Any non authorized Merchant Commodity Code purchases
• Personal purchases.  All purchases must be business related
• Cash advances or cash awards, including honorariums
• Live animals
• Construction and remodeling
• Specials Services; independent contractors, performers, consultants, and speakers; including personal services, doctor visits, hospital and attorney fees
• Fuels, i.e. gasoline and diesel fuel for operating licensed vehicles
• Capital equipment or Inventoried Items

2.5 Sales Tax Exemption:

Utah State University’s Sales Tax Exemption number is 11895815-002-STC and is imprinted on each Purchasing Card.  It is the responsibility of the Cardholder to ensure that sales tax is not charged when making a purchase.  If sales tax in charged in error, the Cardholder should submit a request for a credit to the supplier, as soon as possible.

2.6 Systems Management:

The Utah State University Office of Purchasing Services is responsible for managing the system and will verify that all purchases are appropriate and adequately documented.  Selected audits will be performed by the assigned Internal Auditor.

2.7 Cardholder Account Management:

Each Academic or Administrative Department is responsible for managing its’ cardholder accounts.   The areas of responsibility are defined within each department to assist in the management of all cardholder accounts.  These areas are managed by the Cardholder and Business Office Personnel or Card Administrator.

2.8 Questions:

All questions related to the Purchasing Cards should be referred to the Utah State University Purchasing Card Administrators at 797-1037 and/or 797-1788.

2.9 Payment to Card Provider:

One single payment to the Card Issuer will be made by the University Accounts Payable/Controller’s Office within 6 days after receipt of the Purchasing Card Statement of Account.  This process is time sensitive and it is critical that the University make payment to the Card Issuer within the stipulated contractual time frame.

2.10 Corporate liability:

The U.S. Bank Purchasing Card Program carries corporate, not individual liability. 

3.0 Procedures

3.1 How to Obtain a Purchase Card: 

A completed Cardholder Purchasing Card Application/Change Form must be submitted for each prospective Cardholder.  The form must be filled out completely and signed by the account administrator or business office personnel responsible for the default index listed on the form.  The form should then be submitted to the Program Administrators in Purchasing Services for processing.

Each prospective cardholder must attend a Cardholder training session before a card can be issued.    Contact the Program Administrators in Purchasing Services for the next convenient session.

All prospective Cardholders must sign a Cardholder Agreement Form to be eligible to receive a Purchasing Card. 

3.2 Keeping Cards Secure:

The Cardholder is responsible for the security of the card(s) and all transactions made with the card(s).

• A: The Cardholder should sign the back of the card upon receipt and contact the issuer to activate the card.
• B: The Card should behandled as if it were cash.
• C: The card number should not be given to a company or to a sales representative to “keep on file” for future use.

3.3 Mapping of FOAPALS:

Each card is mapped (assigned) to a particular University FOAPAL and all charges on a given purchasing card will be charged to that FOAPAL.  Departments or employees/cardholders using multiple University FOAPALs will be issued a separate card for each applicable Index.  It is the responsibility of the Cardholder, Account Manager and/or Business Manager to notify the University Program Administrators of any Index changes or closures for their cards. The accounts indicated will reflect the Merchant Commodity Code assigned to the vendor.  If an account change is necessary for any transaction, it may be processed by using the Banner reallocation screens or the Journal Entry Form.

3.4 Violations:

Improper use of the Purchasing Card may result in disciplinary action being initiated against the Cardholder, based on Section 2 of this document.  All Purchasing Card transactions will be audited and violations of policy and procedure will be monitored and recorded.  It a violation occurs, points will be given according to the Violation Types listed below and the Cardholder and the Card Account and/or Business Manager will be notified by memo as to the nature of their violation and the accumulated points.  If a Cardholder is issued three (3) violation memos in a fiscal year period, the Card may be revoked.

Violation Types	Point Value
Personal Purchase	150
Splitting of Transaction	60
Purchase of a Restricted Item	50
Unauthorized Purchase made by someone other than Cardholder	50
Itemized Receipt/Support Documentation missing (1st violation)	30
Itemized Receipt/Support Documentation missing (2nd violation)	40
Itemized Receipt/Support Documentation missing (3rd violation)	50
(The Missing Receipt Form must not be used more than twice in any fiscal year or violation points will be assessed.)
3rd Use of Missing Receipt Form	30
4th Use of Missing Receipt Form	40
5th Use of Missing Receipt Form	50
Sales Tax charged on a Transaction	10

If a total of 150 points is accumulated during any one fiscal year the card may be revoked

If a Cardholder is approaching the 150-point limit, attendance at a formal training session will reduce their accumulated violation points by half, or to a maximum of 75 points on the date of attendance.  One training session per fiscal year is allowed to reduce the accumulated points.  If a Cardholder is violation free for three billing cycles, or 90 days, following the training session their violation points will be eliminated.

3.5   Using the Purchasing Card:

Confirm that the selected vendor accepts the Visa Card.  If not, choose another vendor or submit a requisition to Purchasing Services so the purchase can be made via a Purchase Order Form.  Inform the Program Administrators, via the Department Contact, that the original merchant did not accept the Purchasing Card. 

Placing Orders Electronically:  When making purchases via telephone, Fax, computer, mail order and etc., give the merchant the card number embossed on the card and direct the merchant to include the following on the shipping label and/or packing slip:

• Cardholder name and phone number.
• Department name.
• Complete campus delivery address including building name and room number or the address for the University’s Receiving Department if the shipment is to be delivered there.
• The words “Purchasing Card transaction”.

Advise the vendor NOT to display Purchasing Card numbers or tax exempt numbers on the outside of the shipping containers.

Using the Internet/World Wide Web:  Cardholders are required to follow any Departmental or University wide guidelines set up for Web purchases.

It is recommended that any purchases made over the Internet be with companies that you have used via traditional methods in the past.

Make sure that your purchase is encrypted in an acceptable manner.

The Cardholder is responsible for purchases made regardless of the method used.  It is important to determine whether a website is the most appropriate method to use.  Convenience should be weighed against price and risk. 

3.8 Shipping and Receiving: 

Cardholders are encouraged to receive their own shipments.  Regardless of who receives the shipment, the Cardholder remains responsible for obtaining all documentation (packing slips, mail order form copies, etc.) related to the purchase and verifying that the documentation complies with the requirements for hard copy support documentation as defined in Section 1 of this document.

When placing an order that will be shipped to the University Central Receiving Department, give your department and Cardholder name to the supplier and ask for that information to be marked clearly on the outside of the package.

Address for Central Receiving:
Utah State University
Receiving Department
1295 East 700 North
9200 Old Main Hill
Logan, Utah 84322-9200

3.10 Inspection of Goods Received:

The Cardholder is responsible to inspect the goods upon arrival.  All packaging materials should be retained until it is determined the items received are undamaged and acceptable.

3.11 Merchandise Returns and Exchanges:

The Cardholder is responsible for contacting the supplier when merchandise purchased with the Purchasing Card is not acceptable (incorrect, damaged, defective, etc.). Arrangements for a return, credit or an exchange need to be pursued with the supplier.

Contact the supplier and follow directions closely.  Be aware that in some instances the supplier may assess a restocking fee.  This fee may be negotiable and can occasionally be reduced or eliminated.

Merchandise Returned for Credit:  If merchandise is returned for credit, the Cardholder is responsible for obtaining a credit receipt from the supplier and retaining that receipt with the support documentation for that purchase.  Receiving cash or checks to resolve a credit is prohibited.

Merchandise Exchanged:  If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the supplier and obtaining a replacement as soon as possible.  Documentation showing the proper resolution of the exchange is to be retained with the support documentation for that purchase.

3.12 Disputes:

If the Cardholder disputes a charge, the nature of the dispute and the final resolution must be documented. This documentation must be retained with the Statement of Account on which the disputed charge appears.

Vendor Resolution: Whenever possible, the Cardholder should try first to resolve disputed charges directly with the vendor.  Most vendors prefer to resolve the dispute themselves and are willing to provide help.  If the vendor agrees that an error has been made, the vendor should process a credit to the Purchase card account. Future follow up is required to ensure all credits due are received.

US Bank Resolution:  If the dispute cannot be resolved directly with the vendor, the Cardholder must first call 1-800-344-5696 and then complete a Cardholder Dispute Form as directed by US Bank.  A charge cannot be disputed beyond 60 days past the transaction date as noted on the Statement of Account.  The amount of the next statement will be reduced by the amount of the disputed item until the transaction in question is resolved.

3.13   Lost Cards: 

The U.S. Bank Purchasing Card is the property of Utah State University.  If the card is lost or stolen, notify the Program Administrator and contact U.S. Bank Customer Service immediately (1-800-344-5696). Written confirmation of cancellation must then be accomplished by mail or fax to the University Purchasing Card Program Administrator.

U.S. Bank will block additional use of a lost card upon telephone notification.  Prompt action in these circumstances can reduce the University’s liability for fraudulent charges.

Updated September 2006

For copies of the Purchasing Card forms, click on the links listed below.

P-Card Transaction Log Form (pdf)
The use of the Transaction Log is optional and was developed as a way for cardholders and managers to track the purchasing card transactions and assist in reconciling both the US Bank and University monthly transaction statements.

Purchasing Card Application Record (Form) (pdf)
A completed Purchasing Card Application Record is required when requesting a new P-Card or may be used to make changes to an existing P-Card account.

Purchasing Card Agreement Form (pdf)
The completed Purchasing Card Agreement Form is required for every card issued and must be completed by the cardholder and returned to Purchasing Services upon receipt of the P-Card.

P-Card Activity Verification Form (pdf)
The optional Activity Verification Form can be used as support documentation for purchasing card transactions that could be viewed as personal purchases but were made for official University business purposes.  All itemized receipts and other explanatory documentation for the activity should be attached to this form and be retained with the applicable monthly P-Card statements. (This form is NOT to be used for Meals or Entertainment.)

P-Card Missing Receipt Form (pdf)
The Missing Receipt Form is to be used only in exceptional circumstances and if the cardholder cannot obtain a replacement receipt for the lost invoice from the vendor/supplier.  It cannot be used more than twice in any fiscal year without the cardholder receiving user violation points.

P-Cardholder Delegation Form (pdf)
A completed and approved Purchasing Cardholder Delegation Form is required whenever a Cardholder wishes to delegate purchasing authority to another employee. The original form, containing all signatures and Purchasing Services approval, should be filed with the Cardholders department or administrative area, and a copy must be forwarded to Purchasing Services.

A copy of the Purchasing Cardholder Delegation Form should be attached to the monthly P-Card bank statement for each month that contains P-Card purchases made by a delegated user. The monthly P-Card bank statement should be reviewed and signed by the Cardholder and Cardholder’s supervisor.  The delegated card user must be an employee of the University, (or in the case of Agency Funds for student organizations, delegation to a student may be appropriate) and is required to attend Purchasing Cardholder Training prior to receiving the delegation.

Meals & Entertainment Policy:
Meals and Entertainment Policy (pdf)
Meals and Entertainment Form (pdf)
USU Operating Policy Number 516, effective January 27, 2006 - the University Meals and Entertainment Policy - lists the meals and/or entertainment activities and expenses permitted and the required documentation for these activities.

University Gift Policy:
Operating Policy Number 505; effective as of August 15, 2006.  This policy provides specific guidelines regarding the value and type of gifts or awards that may be given to employees and the characteristics that make them taxable or non-taxable.  The policy is available through the following link http://www1.usu.edu/hr/policies/505.htm

 

Purchasing Card – Questions with Answers

Who can obtain a USU Visa® Purchasing Card?
An employee whose position requires them to make small dollar purchases or is responsible for expending University funds.

What is a small dollar purchase?
Small dollar purchases are typically for several hundred dollars or less.  For example, it could be a single item costing $200 or a group of items totaling less than $2,000.

How does someone obtain a card?
Complete the Purchasing Card Application and Change Form and obtain approval from you college or department card manager.  Completed forms are then forwarded to the Program Administrator for processing with the issuing bank.  All cardholders must attend a cardholder training session and sign and submit a completed Purchasing Card Agreement Form.

Who handles cardholder information changes?
The department card manager must approve any changes and then forward the information to the Program Administrator in Purchasing Services.

Who is the Program Administrator?
The Program Administrator, located in Purchasing Services, coordinates all activities related to the University Purchasing Card Program.

Why not simply use a purchase order?
Purchasing Services and the Controller’s Office are attempting to not only simplify the purchasing process, but to reduce total acquisition costs.  Using the Purchasing Card will increase flexibility, simplify the purchasing process and reduce costs.

How do I use the card?
The Purchasing Card functions just like a typical charge card, with certain limitations on some types of transactions.  You should always obtain and file a detailed receipt of the items purchased and use it for statement reconciliation purposes.

Can I use the card over the telephone or internet?
Yes, just as you might use your personal credit card.  The supplier will ask for the card number and expiration date.  No card number should be “kept of file” for future reference by any supplier.  Record your transaction on your activity log and instruct the supplier to provide you with an itemized/detailed receipt showing the items purchased.  All receipts must be kept for 5 years after the transaction date.  Remember to give them detailed shipping instructions and the Utah State Tax Exempt Number printed on your card.

What limits are place on the card?
Standard limits include:
●A maximum dollar amount per transaction
●A maximum monthly expenditure limit
●Blocked or restricted types of transactions such as travel related expenses.  Please refer to the Purchasing Card Policies and Guidelines.

What if I need to return an item after I have purchased it?
Contact the supplier and arrange the return/exchange directly with them.  Be sure to obtain any necessary return authorization and a credit receipt for your returned items
.
What if my purchase is declined?
Contact the Program Administrators at 435-797-1788 or 435-797-1037.

Do I pay sales tax?
No, all university purchases are exempt from paying Utah State sales tax and the State Tax Exempt Number is imprinted on your Card.  Contact the Program Administrators or your Card Manager if you have any questions or problems.

What should I do with receipts?
Save them, they are very important!!  You need the receipts to reconcile your monthly bank and Controller’s expenditure statements.  By State and Federal Law, all records must be retained for 5 years after the statement date.

Do I pay the Bank Visa® Statement?
No, the University will pay the total bank bill.  You will need to save your receipts to verify the charges listed on you statement.

How do I reconcile the Monthly Statements?
You will receive a monthly statement listing the suppliers and purchases.  Use your Purchasing Transaction Log along with the detailed receipts to verify that the statement charges match your purchase records.  Any disputed transactions will be handled with adjustments issued the next month.

What if there is an incorrect charge on the statement?
If you have a problems with a charge on your statement, identify the problem and try to resolve it directly with the supplier.  If the supplier refuses to issue credit or otherwise fails to resolve the problem, call US Bank Customer Service at 1-800-344-5696, then complete a Cardholder Dispute Form, as instructed, and forward it to the Bank.

What if there is an unauthorized charge on my statement?
Notify US Bank Customer Service at 1-800-344-5696 immediately.  If the charge appears to be fraudulent, the card account will closed and a new card and account number opened.

What if I lose a receipt?
Having a detailed receipt is important because it serves as proof of the purchase.  It is also proof of certain tax exempt purchases.  If a receipt is misplaced, try to get a copy from your supplier.  If this is impossible, complete the Missing Receipt Form and file it with your monthly statement.  The Missing Receipt Form may be used twice during a fiscal year.

How do the charges made on my Purchasing Card get into the accounting system?
All purchases made on your card will be charged to the account code specified on your application or may be reallocated in the Banner Finance System.

What if my card is lost or stolen?
Contact US Bank Customer Service at 1-800-344-5696 and the Program Administrators Immediately!  Prompt action will reduce University liability for any fraudulent charges.

Will my purchases be checked?
YES!  Each month you will submit your reconciled expenditure statement, transaction log, receipts and any other supporting documentation to your Card Manager for approval.  Your supervisor also reviews your reconciled statements and receipts, and signs and dates the statement after the review.  Also, there will be random audits to verify compliance with University policies and procedures, so it is important to maintain your transaction log and retain all receipts.

What if the single transaction dollar limit or the monthly expenditure limit on the Card is too low for me?
Have your Card Manager send a request for higher limits to the Purchasing Card Program Administrator.

What if I use the Card to make a personal transaction by mistake?
Have the vendor/supplier reverse the transaction immediately and then submit a billing on your personal card.

Will transaction made on the University Visa® Purchasing Card affect my personal credit rating?
No, the card is to be used for University purchases only.

What if I have a question concerning my account?
Contact the University Program Administrators at 797-1788 or 797-1037.

 

Purchasing Card Training Quiz

• You have a question regarding policies and procedures
  - Who do you, call?
• You are traveling and need to pay for hotel accommodations
  – Can you use the Card?
• You want to purchase a copier for $999
  – Can you use the Purchasing Card?
• Your Director instructs you to use the Card to pay for a service.
  – Do you comply with the request?
• The amount on your receipt does not match the amount on your monthly bank statement
  – What should you do?
• You pick up supplies at an office supply store
  – Do you need a receipt?
• Can you fill your University car with gasoline using the Purchasing Card?
• Your Director asks you to reserve a meeting room at a hotel
  – Can you use the Card?
• You were double billed on your monthly statement
  – Who do you contact?
• The goods you ordered were the wrong color
  – How do you handle this situation?
• A co-worker wants to borrow your Purchasing Card
  – Should you permit this?
• You need to purchase paint – Can you use the Card?
• You need to purchase component parts for University equipment or machinery
  – Can you use the Card?
• You need copier supplies, but the supplier doesn’t accept Visa
  – Should you purchase the supplies elsewhere?
• You do not have a receipt and do not recognize an item listed on your monthly bank state
  – Who should you call - What should you do?
• Can you use the Purchasing Card to make telephone calls?
• Can more than one person, i.e. the Cardholder, be registered
  for a conference or seminar by using the Purchasing Card?
• You need to order chemicals for your research project
  – Should you use the Card?
• Can you use the Purchasing Card to rent a vehicle?
• Can you use the Card for University related Meals and Entertainment expenses?

For additional information or to set up a Department training session on using the Purchasing Card, please contact:
Joyce Howell at 435-797-1788 or email to joyce.howell@usu.edu
or Karlene Combs at 435- 797-1037 or email to karlene.combs@usu.edu