(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
