Purchasing Card Policy/Procedure
T.2c Purchasing Card Policy/Procedure
Policy Statement
The Purchase Card is a university issued card designed to streamline dollar purchases of goods and services for business related purposes. Cards will be provided to employees of the university upon approval by the Department Head and the VP/CFO. This policy guides all faculty and staff using the Purchase Card program at Christian Brothers University.
Introduction
The Purchase Card is a credit card. The card can be used for both in-store purchases as well as phone, mail and On-Line. Do not email credit card numbers to vendors as it can result into Fraudulent activity.
The card is not intended to avoid or bypass appropriate purchasing procedures but it is to be used in accordance with the guidelines established within this policy. This program should be treated with the same sense of responsibility and security used for a personal credit card. Violations of procedures or abuse will be subject to disciplinary action.
Your signature on the Cardholder Acknowledgement indicates that you understand and agree to adhere to the guidelines established for the program.
Purchase Card Administrator (PCA)
The Director of Procurement shall act as the administrator for the purchasing card program.
Acquiring a Purchasing Card
Upon approval by the Department Head and the VP/CFO, the employee must complete the Credit Card Request form (Appendix A) and the Cardholder Acknowledgment form (Appendix B) and return the completed forms to the PCA in Barry Hall (via email). The cardholder is required to read the Purchasing Card Policy and adhere to all policies and procedures.
Cardholders will be notified by the PCA when their card has arrived. Once notified, cardholder will complete assigned training with the PCA, arrange for card pickup and sign a cardholder acknowledge form. After activation, sign the back of the card and always keep in a secure place. Cards remain the property of the university and are only used for university purchases as defined in this policy.
Renewal of Existing Purchasing Card
Mastercard will automatically renew the card approximately 30 days before it expires.
Lost or Stolen Cards
Cardholders must immediately report a lost or stolen Purchasing card by contacting Pinnacle Bank Customer Service at 888-282-2958. Immediately after informing Customer Service, the cardholder must also inform the Purchase Card Administrator.
The cardholder is responsible for the security of the card and any purchases made on the account until it is reported stolen. It is extremely important to act promptly in the event of a lost or stolen card to avoid company liability for fraudulent transactions. The cardholder will not be able to use the account number after notifying the bank. A new card will be issued within 48 hours of notice to Pinnacle Bank.
Canceling Purchase Cards
To cancel a Purchase Card, the cardholder or cardholder’s supervisor must deliver the card to the PCA to cancel the account and destroy the card. Departing employees must surrender the purchasing card to the PCA or supervisor with any current or outstanding receipts. The Supervisor and Vice President will review, reconcile and approve any outstanding charges using the TravelBank online program.
General Information
The Mastercard card is a combination purchase/travel card. Each card will be tailored to individual/group requirements. This will minimize the potential for abuse should your card be lost or stolen.
The Purchasing card should be used by the Cardholder or the persons authorized by the Cardholder. The Cardholder is responsible for all use of his/her card.
Some restrictions have been built into the program. Card limits are established to fit the user profile. Monthly limits are established for certain positions to meet requirements for the job.
Tax Exempt Status
Christian Brothers University is a tax-exempt organization. The cardholder is responsible for notifying the vendor that the purchase is tax exempt. If requested by the vendor, Tennessee Sales Tax certificates are available from the PCA or from the CBU Finance department. The Cardholder is liable for sales tax paid for which Christian Brothers University is exempt. Review your receipt to make sure that sales tax is handled properly. If sales tax is charged in error, the cardholder must contact the vendor to request a refund for the tax charged. Tax exemption is not expected or required for business meals or for out of state hotels.
Purchase Card Use
Purchases must be within the limits of the departments’ available budget.
Purchase card limits are adjusted by the PCA and current limits can be provided upon request for departmental cards. Individual cardholders can log into Pinnacle Bank to see current set limits. Limit adjustments must be approved by the VP/CFO. Limit adjustment request should be sent via email to the PCA and VP/CFO. The email should include:
- Amount of new limit
- Indication whether Temporary or permanent increase/decrease
- Effective dates
- Explanation for limit change
Request should be sent two days prior to the effective date to allow for processing.
UNAUTHORIZED PURCHASING CARD USE
The purchasing card SHALL NOT BE USED for the following:
- Personal purchases
- Cash Advances or ATM cash withdrawals
- Gift cards
- Gifts to individuals or charitable gifts
- Parties and gifts for University employees
- Amazon, Costco, Sam’s or other shopping club dues
- Meals including only CBU employees, unless traveling on university business or approved in advance by the CFO
- Purchase of alcohol, unless previously authorized by Department Head
- Computer equipment (unless ITS)
- Purchases expressly prohibited in the Travel Policy
Except for the situations noted above, the card may be used at any merchant that accepts Mastercard throughout the U.S. or in any foreign country.
Misuse of the Purchase Card
A Cardholder who makes an unauthorized purchase(s) or carelessly uses the Purchase card may be liable for the total dollar amount of the purchase(s) plus any administrative fees charged by the bank in connection with the misuse. The Cardholder may also be subject to disciplinary action.
Misuse of the card can be personal or administrative. Misuse includes but not limited to:
- Lack of timely reconciliation of individual/group cardholder account
- Purchases for the sole benefit of the employee
- Assignment or transfer of a card to an unauthorized person
- Use of a card by a suspended or terminated employee
- Card use in direct violation of the purchasing card policies and procedures contained in this document
Misuse of the Purchasing Card will be handled promptly and uniformly for all cardholders/users (i.e. Department Cards). When appropriate, the Supervisor should attempt informal resolution by bringing the misuse and consequences of further misuse to the employee’s attention. In the instance of a Departmental Card, the cardholder should attempt informal resolution.
If informal resolution is inappropriate or ineffective, the following escalation path should be utilized;
- Supervisor enlisted to resolve issue when cardholder cannot.
- Supervisor will escalate to Director of Procurement
- Director of Procurement will escalate to VP/CFO if further resolution is required.
Below are the list of instances that could lead to the suspension or termination of card usages privileges.
- If a single instance of misuse occurs by a cardholder, a warning will be issued
- In the second instance of misuse, the card will be suspended for at least one billing cycle
- If problems continue after the card is reinstated, the card will be canceled or suspended up to one year
- An approving official can skip any or all of these steps if the incident is severe, resulting in permanent suspension of the card.
The cardholder’s supervisor and/or VP will be notified of any suspected misuse.
Card Refusal
If the card is refused at a merchant where the cardholder believes it should be accepted, call Pinnacle Bank Customer Service to determine the reason for the refusal. Customer Service is available 24 hours/day, 7 days/week: 1-888-282-2958.
Depending on the result of your inquiry, the cardholder may discuss the issue further with the PCA. The PCA is empowered to modify the restrictions on the cardholder’s use of the Purchasing Card.
Reconcilement and Payment
Unlike personal credit cards, the Purchasing Card Program is handled as a corporate liability. The Employee’s personal credit history has not been considered when a card has been issued.
It is the cardholder’s responsibility to review the monthly Purchasing Card charges in TravelBank and verify that all transactions are valid and the expenditures are for university related purposes. The cardholder will be required to reimburse the university with personal funds for any activity that is not a business expense. The Cardholder will be responsible for obtaining original itemized receipts for every transaction and uploading them during the reconciliation process in TravelBank. A summary receipt for purchases will only be accepted if/when an establishment or organization cannot provide an itemized receipt. In that instance, please refer to the IRS guidelines in T.2c-1 (listed below). This information must be provided along with a summarized receipt. For online orders, print the detailed confirmation/receipt. Conference registration forms or subscription renewal notices should be printed in their entirety. It is extremely important to request and retain purchase receipts, as this is the only original documentation to substantiate the purchase as a valid business expense.
T.2c-1 Christian Brothers University complies with IRS regulations, which requires that all business expenses be substantiated with adequate records. This substantiation must include information relating to:
- The amount of the expenditure.
- The time and place of the expenditure.
- The business purpose of the expenditure.
- The names and business relationships of individuals other than the employee for whom the expenditures were made.
- Receipts must be legible and scanned in their entirety.
In the event the Cardholder has misplaced/lost a receipt, a lost receipt form (Appendix C) will need to be completed and uploaded in the TravelBank system where normally a receipt would be uploaded.
TravelBank Online will house all card transactions and can be accessed at any time by cardholders.
Purchasing Card cardholders will not be reimbursed for transactions made using a personal card or cash.
Purchases Requiring Pre-Approval
Any purchase of $750 or higher will require, a Pre-approved purchase order generated through the TravelBank system and submitted for approval to the Cardholder’s manager and VP/CFO.
Monthly Timeline:
The closing date for monthly activity is the 30th (or 31st). Users will log into the TravelBank Access Online system and approve transactions before approving their statement. This activity should be completed on or before the last business day of the month.
Cardholders will need to have all reviews and approvals completed based on the date provided by the PCA each month. All reconciliations must be completed through the TravelBank Access Online system and approvals will be routed through the proper approval channels.
Purchasing Card transactions not reconciled and approved by the date provided the PCA each month, will be suspended until an approved reconciliation is received. Cardholders/Users submitting a 3rd late submission will be subject to the loss of card privileges.
