Ohio Admin. Code 3364-40-16 - Purchasing card (p-card)

Current through all regulations passed and filed through September 3, 2021

(A) Policy statement

The university approved purchasing card ("p-card") is a university credit card issued in the name of authorized, trained individuals to purchase certain eligible goods and services in support of the university of Toledo. The p-card is both a procurement and payment tool and provides an effective, cost-efficient method for employees to procure goods and services up to the maximum credit line authorized. All cardholders must use the card responsibly and in a manner consistent with the university's policies and procedures and within the standards of the Ohio ethics law. Personal purchases are strictly prohibited. As a public institution, the university is held to a high degree of public scrutiny and accountability for its business practices. Improper use of the p-card may result in disciplinary action up to and including termination of employment.

(B) Purpose of policy

The purpose of this policy is to ensure that all individuals authorized to conduct purchasing and payment activities with the p-card do so responsibly and are audited regularly for compliance with the following specific policies (procurement; membership, dues and subscriptions; research and sponsored programs; travel and business expense reimbursement), and any other applicable university policies. The p-card provides an efficient tool used to reduce administrative burden and costs, but it also exposes the university to risk. This policy outlines the responsibilities and controls to mitigate the risk.

(C) Card limits and eligibility

Card limits will be determined by accounts payable based on type and volume of usage. Properly trained university of Toledo employees are eligible for a p-card. Non-employee affiliates will be reviewed by accounts payable on a case-by-case basis.

Regardless of card limit, purchases over five thousand dollars must be approved in writing by the associate vice president of finance (for non-goods and services purchases, such as travel purchases) and by the senior director, supply claim (for goods and services purchases).

card type

standard limits

eligibility considerations

Individual card (heavy user)

four thousand nine hundred ninety-nine dollars/transaction*

ten thousand dollars/month

issued in an individual's name.

Individual card (moderate user)

one thousand dollars/transaction

five thousand dollars/month

issued in an individual's name.

*For purchases above this limit, exceptions must be approved in writing by the associate vice president of finance (for non-goods and services purchases, such as travel purchases) and by the senior director, supply chain (for goods and services purchases).

Limits for p-cards issued to research and sponsored funded programs will follow the then current limit as outlined in office of management and budget "OMB" uniform guidance 2 CFR part 200.

For administrative purchases, university departments are encouraged to limit the number of cards issued and utilize singular cards to support all department employees.

Power cards, defined as cards with higher limits as assigned by the controller, are issued to accounts payable team members for specific use in the payment of invoices/expenditures to suppliers.

All p-cards will be reviewed on a scheduled basis for inactivity. If there is no activity in a twelve-month period, the p-card will be inactivated for non-use.

(D) Roles and responsibilities
(1) Definitions:
(a) Cardholder - an individual who has received approval to hold a p-card in the university's name to make appropriate purchases of goods or services in alignment with departmental needs.
(b) Card approver - the cardholder's immediate supervisor or person acting as a delegate of the card approver.
(c) Card administrator - an individual in the account payable department responsible for the administrative functions of the p-card program.
(2) The cardholder is responsible for:
(a) Participating in p-card training and signing the cardholder affirmation for responsible use of the p-card;
(b) All transactions purchased or paid for using the p-card and providing documentation that supports the business purpose and provides proof of purchase (itemized receipts);
(c) Compliance with policies and procedures related to the procuring of goods, services, equipment, travel, etc. with university funds;
(d) Safeguarding the card and card number against unauthorized use;
(e) Contacting the issuing bank immediately, and notifying the card administrator immediately if fraudulent transactions are suspected;
(f) Performing online transaction review on p-card issuing Concur to ensure that each transaction includes a business purpose, attached supporting documentation, account assignment, and index allocation bank's website, as well as providing a transaction allocation report, with supporting documentation attached, to the card approver on a monthly basis;
(g) Submitting for approval a monthly transaction report on Concur by the tenth of the month;
(h) Adhering to all grant funding requirements of the grant being charged, ensuring the expenditures are allowable under the specific granting agency and that the most restrictive of university or granting agency policies are followed;
(i) Avoiding making purchases that violate university policy on restricting business transactions that may be perceived as a conflict of interest (purchases from a business in which you or a relative have a financial interest) as per university policies on this subject; and
(i) Ensuring that sales or use taxes in Ohio or in other states with a sales tax exemption are not charged.
(3) The card approver is responsible for:
(a) Determining appropriate staff members who should be issued a p-card;
(b) Ensuring departmental funds are available in index(es)/account(s) that cardholder will use; reallocating funds if necessary;
(c) Participating in p-card approver training and acknowledging the requirements;
(d) Reading, understanding, and following this policy and related procedures;
(e) Monitoring transactions of assigned cardholder(s) for appropriateness of purchase;
(f) Completing monthly review of concur p-card expense reports, including the transaction allocation report and itemized receipts for each cardholder(s);
(g) Identify possible violations of assigned cardholder(s) and taking appropriate action if violations are confirmed; and
(h) Notifying the card administrator of changes of cardholders (employees who have separated from the university or those no longer in need of a card).
(4) The card administrator is responsible for:
(a) Processing p-card applications and establishing the set-up of cardholder/card approver in banking system.
(b) Increasing/decreasing card limits as received from authorized department approvers.
(c) Removing cardholders from the system as notified
(d) Audit of all p-cards on a scheduled basis (frequency determined by departmental volume/use of card) *

*All documents and departmental procedures are subject to audit by finance and internal audit.

(E) Misuse of p-card
(1) Personal or fraudulent use of the p-card will result in immediate revocation of the p-card and will result in corrective action up to and including termination and/or criminal action. In addition, the university will seek restitution for any inappropriate charge.
(2) Progressive disciplinary steps may include verbal notification, written notification, temporary suspension and/or permanent loss of privileges.
(3) Disallowed purchases made with grant or outside sponsored funding will be re-allocated to the appropriate department account.
(F) Record retention requirements

All official records as defined by section 149.011 of the Revised Code (documents, reports and records) will be retained by the department for the minimum periods stated in the records retention for public colleges and universities in Ohio, and must be available for review and audit.

(F) Related documents Record retention requirements

All official records as defined in section 149.011 of the Revised Code, documents, reports and records definitions of the Revised Code, will be retained by the department for the minimum periods stated in the records retention for public colleges and universities in Ohio, and must be available for review and audit.

The following are reference materials and information in this policy:

(1) Procurement policy

(2) Procurement manual

(3) P-card manual

(4) Membership dues and subscriptions policy

(5) Research and sponsored program policy

(6) Travel and business expense reimbursement policy

(7) Records retention

Notes

Ohio Admin. Code 3364-40-16
Effective: 10/10/2019
Promulgated Under: 111.15
Statutory Authority: 3364
Rule Amplifies: 3364
Prior Effective Dates: 04/01/2018

The following state regulations pages link to this page.



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