P-Card Policy

I. Scope

This Policy applies to all employees of Indiana Wesleyan University (IWU) who use the University’s cards as a form of procurement for any item pertaining to University business.

II. Policy Statement

This policy provides basic guidance and information for the University’s P-Card program.  Purchase Cards (P-Cards) are used for the purchasing of items pertaining to University business.  This includes but is not limited to conferences, physical items or one-time vendor purchases. Transactions can be processed via phone, fax, mail, internet or point of sale (POS). The card is not intended to avoid or bypass the University’s purchasing and payment procedures, but rather is intended to provide an alternate procurement method. University departments may establish more, but not less, restrictive policies for use within their own departments.

III. Reason for the Policy

This policy seeks to ensure that the University has clear guidelines and expectations about the proper use of P-Cards.  This helps the University to fulfill its mission to be a good steward of its resources.

IV. Procedures 

A. Purchasing Card Enrollment

All potential Cardholders must complete a Purchasing Card Enrollment/Maintenance Form and submit it to Procurement Services. Cards will be issued in the name of individuals. Cards will be issued in the name of a department or other non-individual entity on a limited exception basis. In such instances, an individual must still be assigned the responsibilities of a Cardholder. Procurement Services reserves the right to exercise more active governance of such accounts.

B. Ownership of Purchasing Cards

The Purchasing Card remains the property of IWU.

C. Purchasing Card Security

It is the Cardholder’s responsibility to safeguard the Purchasing Card and its related account number at all times.
1. Keep Purchasing Card in a secure location at all times.
2. Never write down Purchasing Card account numbers.
3. Use discretion when providing account numbers, particularly over the phone or on the internet.

D. Lost, Stolen or Damaged Purchasing Card

1. If a Purchasing Card is lost or stolen, contact the bank provider’s toll free number immediately.
2. Contact the Purchasing Card Administrator immediately.

E. Cardholder Account Maintenance

1. All Cardholder information must be kept current.
2. Cardholders must complete a Purchasing Card Enrollment/Maintenance Form and turn it into the Purchasing Card Administrator to make any changes to their account (e.g., name, limit, account closure, etc.).
3. Cardholders who transfer to a new position and require the use of a Purchasing Card must also complete a Purchasing Card Enrollment/Maintenance Form.

F. Purchasing Card Account Closure or Cancellation

1. The Cardholder must notify the Purchasing Card Administrator immediately when a Purchasing Card account is to be cancelled.
2. The cancelled or closed card must be cut in half and sent to the Purchasing Card Administrator along with the Purchasing Card Enrollment/Maintenance Form.
3. If a Cardholder has been separated from the University, Cardholders must surrender their Purchasing Card, along with the Purchasing Card Enrollment/Maintenance Form, to the Purchasing Card Administrator one week prior to leaving the University.
4. If the Cardholder leaves IWU employment and fails to turn in his/her Purchasing Card, it is the responsibility of the appropriate Vice President to notify the Purchasing Card Administrator immediately to close the account.

G. Purchasing Card Credit Limits

The monthly Purchasing Card spending limit is $2,500. The requesting department’s Vice President may set lower limits. Limits higher than $2,500 must be approved by the Chief Financial Officer or designee. Limits are to be reviewed annually by the respective Vice President.

H. Purchasing Card Use

1. Authorized Card Use
(a) Cardholders are authorized to use the Purchasing Card to purchase merchandise and some types of services required as a function of their duties at the University.
(b) Purchasing Cards should not generally be shared or used by someone other than the named Cardholder. Limited exceptions may be granted by Procurement Services. Note that the Cardholder retains responsibility for all transactions on his/her card, including transaction documentation and reconciliation.
2. Unauthorized Card Use
(a) A Cardholder who makes an unauthorized purchase with the Purchasing Card, or uses the Purchasing Card in an inappropriate manner, will be subject to disciplinary action, which may include revocation of card privileges, disciplinary proceedings up to and including termination of employment, and/or criminal prosecution. The Purchasing Card must not be used for purchases such as, but not limited to:
(1) Goods or services for personal use
(2) Goods or services without legitimate business purpose
(3) Cash Advances (unless the Purchasing Card Enrollment/Maintenance (Cash Advance) Form is completed and approved)
(4) Alcoholic beverages
(5) Services requiring a contract and/or on-site presence of vendor
(6) Fines of any kind
(7) Any purchase prohibited by University policy (e.g., rentals, leases)
(8) Capital equipment over $2,500 (ANY capital purchase must have the approval of the Executive Director of Budgeting BEFORE placing the order.)
(9) Non-capital purchases over $25,000 (Must have the approval of the Associate Vice President for Business Affairs & Compliance BEFORE transaction.)
(10) Cell phones and other monthly charges (a Cell Phone/Pager Request Form must be completed, see IT Cell Phone Policies and Procedures for more information)
(11) Purchases from vendors already setup in Datatel (These should go through the Purchase Order process.)
(12) House accounts
(13) Stringing successive purchases to circumvent an approved credit limit
(14) Gift certificates, gift cards, cash-equivalent prepaid cards
(15) Weapons or ammunition
(16) Lab supplies (e.g., chemicals, gases, animals, etc.)
(17) Drugs and pharmaceuticals
(18) Compensation (e.g., salaries)

I. Responsibilities

1. Cardholder
(a) The Cardholder must obtain purchase documentation from the vendor (e.g., sales receipt, packing slip, e-mail confirmation, etc.) to support all purchases made with the Purchasing Card.
(b) Cardholders are responsible for resolving any disputed transaction directly with the vendor.
(c) If the Cardholder is not the Reconciler, the Cardholder must give all backup documentation to the Reconciler within five business days of the purchase.
2. Reconciler
(a) The Reconciler must reconcile Purchasing Card transactions on the Purchasing Card vendor website on or before the reconciling deadline.
(b) All un-reconciled transactions will be charged to the department’s default Purchasing Card account number. It is the responsibility of the Reconciler to process a journal entry (JE) to move the charges from the default account to the department’s correct budget account. The Reconciler must run an Expense Report. The report, along with purchase documentation, must be sent to the Approver for proper approval signatures.
(c) The Reconciler must resolve any discrepancies identified by the Purchasing Card Administrator (see item IV.G.4. (b) below).
3. Approver
(a) The Approver is responsible for approving all transactions made with the Purchasing Card.
(b) The Approver must send the Expense Report with Approver’s signature and original purchase documentation to Procurement Services within five business days of the reconciling deadline.
4. Purchasing Card Administrator
(a) The Purchasing Card Administrator will review and approve all transactions on the Purchasing Card vendor website.
(b) The Purchasing Card Administrator is responsible for auditing each Expense Report and backup. For a charge to be supported, the available documentation must be adequate to allow the Purchasing Card Administrator to ascertain whether the purchase was valid.
(c) The appropriate Reconciler will be advised of any discrepancy. Reported discrepancies must be investigated and resolved within five business days. Discrepancies include, but are not limited to, the following:
(1) Insufficient support documentation
(2) Insufficient detail on support documentation
(3) Insufficient approvals (i.e. wrong Approver, incomplete approvals)
(4) Lack of account numbers on documentation
5. Procurement Services will retain all monthly Expense Reports in accordance with the University’s Policy for Document Retention and Destruction. Failure on the part of the Cardholder, Reconciler, and/or Approver to reconcile transactions, submit proper backup to Procurement Services on a timely basis, or fulfill any other responsibility imposed herein may result in temporary or permanent revocation of the Cardholder’s and/or Reconciler’s privilege.