Purchasing Card Program Card Program Guide i Revised October 2017 IOWA STATE UNIVERSITY PURCHASING CARD

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  • Purchasing Card Program Guide

    Revised October 2017

  • Purchasing Card Program Guide i Revised October 2017

    IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMTableofContents

    ProgramPoliciesandProcedures Page

    I. Introduction 1II. Financialpolicy 2III. Howitworks 5IV. Applicationprocess 5V. Orderingprocess 6VI. Proofofpurchasedocumentation 7VII. Transactionreconciliation 8VIII. Segregationofduties 8IX. Transactiondiscrepancies,disputesandfraud 9X. Reportingalostorstolencard 9XI. Employeetransferortermination 9

    Appendices

    I. GeneralrulesforISUfunds 10II. Expendituresinvolvingfoundationfunds 15III. Vendingaccountusage 16IV. Iowagiftlaw 16V. Communicationtechnologyallowance 18VI. Salestaxexemption 19VII. Forms 21VIII. Additionalresources 21

  • Purchasing Card Program Guide ii Revised October 2017

  • Purchasing Card Program Guide 1 Revised October 2017

    IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMProgrampoliciesandprocedures

    I. Introduc on TheIowaStateUniversitypurchasingcardprogramhasbeendesignedtoallowfortheprocurementoflowdollarsuppliesbytheenduserthroughtheuseofacreditcard.Theintentistoeliminatetheneedforsmalldollarpurchaserequisitions,vouchersandreimbursements.Thepurchasingcardprogramisdesignedtoimproveef iciencyinprocessingandcompletinglowdollarpurchasesofapprovedcommoditiesfromvendors/suppliersthatacceptaVISAcreditcard.Forthecardholder,usingthePurchasingCardwillprovidequickerturnaroundtimeonorders,widespreadacceptancebyvendors,andreducedpaperworkprocessing.ThePurchasingCardconceptisdesignedtodelegatetheauthorityandcapabilitytopurchaselowdollaritemsdirectlytotheenduser.ThestandardPurchasingCardmaybeusedforpurchasesofallnonrestricted(acceptable)commodities(seeSectionII.3.FinancialPolicy).ThePurchasingCardwithhospitalityrightsmayalsobeusedforpurchaseslistedinSectionII. .FinancialPolicy.EachPurchasingCardisissuedtoanamedindividualandtheUniversityisclearlyindicatedonthecardasthecorporatebuyerofproductsandservices.ThePurchasingCardisnottobeusedforpersonaltransactions.Thisprogramwillenableyoutopurchaseapprovedcommoditiesdirectlyfromvendors/suppliers.PaymentforallPurchasingCardtransactionsisperformedelectronically,whicheliminatestheneedtoprocessvendorinvoicesandtoissuechecksforpaymentofeachinvoice.WhenusingthePurchasingCard,chargesmaybedistributedamongmultipledepartmentalaccountandexpenseobjectcodecombinations.Procurementservices,accounting,andtheinternalauditof icewillmonitortheperformanceofthePurchasingCardProgram.Questionsorconcernsregardingpolicyshouldbedirectedto: CoryHarms,DirectorofProcurementServices 5152942591 clharms@iastate.eduQuestionsaboutPurchasingCardprocedureorthereconciliationsystemshouldbedirectedto: Procurementserviceshelpdesk 5152941308 pcard@iastate.edu LesleyLackore,ProgramAdministrator 5152944589 llackore@iastate.edu ShariRussell,ProgramCoordinator 5152944573 sjrussel@iastate.edu StacySassman,AssociateDirectorofProcurementServices 5152949390 ssassman@iastate.edu KristieRomsdahl,ProgramCoordinator 5152941308 romsdahl@iastate.edu

  • Purchasing Card Program Guide 2 Revised October 2017

    Equipment Itemsvaluedat$5000ormore,tagablefor

    inventory,withausefullifeof1+year Automaticelectronicde ibrillators(AEDs) Computers(servers,desktops,laptops,tablets,iPads) Copiers Drones/UnmannedAerialVehicles(UAVs) PurchasesinvolvingtradeofISUproperty Telephones,cordlesstelephones,IPphones,cell

    phonesandrelatedequipment(exceptfromcontractedvendors)

    Travelexpenses Airlinetickets Hotelrooms(includingreservationofrooms) Meals Carrentals Parkingfees Gasolineandfuel

    ToexternalvendorsforitemsavailablethroughUniversitystores,services&thecyBUYContractMarketplace

    Printingandphotocopying Businesscardsandletterhead Postalandparcelservices Photocopiersupplies(includingtonercartridges) Cylindergasesandliquidnitrogen

    Personalitemsandgifts Itemsforpersonaluse Giftsbene itinganindividualemployee(ifthe

    fundingdoesnotallowsuchpurchases) Donations

    Services Servicesrequiringasignedcontract Rentalofhighvalue(>$5000)orhighrisk

    equipment Constructionservices&repairoffacilities Professionalservices Movingservices(employeerelocation) Telecommunicationservices(exceptfromcontracted

    vendors)

    Itemsrestrictedduetostandards/reportingissues Packagealcohol Controlledsubstances Computers(servers,desktops,laptops,tablets,iPads) Firearms,weapons,andammunition Furniture,furnishings,andartwork

    (exceptfromcontractedvendorthroughAccessPlus) ItemsforCampusOrganizations Itemsfromcon lictofinterestvendors Itemsfromonlineauctions Laboratoryanimals,livestock,animalcagesand

    aquariums Leases/rentaloflandand/orof icespace Pharmaceuticalsanddrugs Radioactivematerialsandhazardousmaterials

    Additionalrestrictionsforcardholderswithouthospitalityrights

    Hospitalityexpenses Mealsandfoodforconsumption Entertainmentexpenses Interviewexpenses HotelroomsforvisitorstotheUniversity

    II. Financial Policy 1. ThePurchasingCardisavailabletoallfacultyandstaffofIowaStateUniversitywiththeapprovaloftheir

    respectivedepartmentchairordirectoranddean,vicepresidentorprovost.AllcardholdersmustsignandacceptthetermsandconditionsoftheIowaStateUniversityPurchasingCardProgramCardholderAgreementandtheStatementofPurchasingCardReceipt.

    2. CardholdersareexpectedtopurchaseitemsthatarestockedatUniversityStoreswheneverpossible

    unlesssubstantialsavingscanberealizedthroughcyBUYorotherUniversitycontracts.ItemsandservicesfromvendorsthatholdcompetitivelybidcontractswithISU(e.g.of icesupplies,computeritems,scienti icandresearchsupplies,copiers,tentrentals,etc.)shouldbepurchasedoncyBUYorontheUniversitycontractswiththevendorratherthanfromvendorsthatcompetedirectlywiththosecontracts(seehttp://www.procurement.iastate.edu/contracts/).VendorsthatcompetedirectlywithcyBUYvendorsorUniversitycontractsshouldonlybeusedaftercontactingProcurementServices(5152944860orprocurement@iastate.edu)forapproval.

    3. ThePurchasingCardmaynotbeusedforthefollowingtransactions:

  • Purchasing Card Program Guide 3 Revised October 2017

    4. AllpurchasetransactionsprocessedagainstthePurchasingCardmustbemadebytheindividualtowhomthecardisissued.Thecardistobeusedonlybythenamedcardholderandisnottobeloanedtoanotheremployee,orotherperson.Thecardholderhasfullliabilityforanyimproperchargesthatresultfromallowingotherstousethecard.

    5. Attimes,Universitypurchasesmayresultincashorcashlikeincentives.Thecashand/orincentivesare

    thepropertyoftheUniversityandmaynotbeusedforpersonalgain.Examplesofsuchincentivesinclude,butarenotlimitedto:rebates,giftcards,twoforonepurchasesandspendrewards.TheUniversityrecommendsthatcardholdersnotparticipateinthesepromotionaloffers.ItistheresponsibilityofthecardholdersdepartmenttobeassuredthatanymonetaryorcashincentiverewardreceivedasaresultofanIowaStateUniversitypurchasebecomesthepropertyoftheUniversity.

    6. ThePurchasingCardmaybeusedforconferenceregistrationfees.Feesforoptionaleventssuchastours,

    golfoutingsandothersimilareventsthatarenotincludedwiththenormalregistrationareconsideredpersonalandarenottobechargedtotheCard.Thesefeesshouldbepaidforpersonallyandsubmittedforreimbursementwhenappropriateandallowable(maximummealrateswouldapply).Theobjectcodeforregistrationexpensesmustbe23200(domestic)or23300(foreign).DuesormembershipsmayalsobepaidwiththeCardprovidingsomebene itisderivedbyISUasaresultofthemembership(seeUniversityPolicyLibrary,policy.iastate.edu/policy/memberships/,forfurtherinformation).Theobjectcodemustbe38200fortheseexpenses.Golf,airlineclubsandsimilarmembershipsarenotallowable.ThepurchaseofmembershipssuchasAmazonPrimeisconsideredarewardprogram(seenumber5above)andnotallowablebecausethesemembershipsarenotlimitedtoISUbusinessonlyandcanbeusedforpersonalpurchases.Journalreprints,classi iedadvertising,andsubscriptionsmaybepaidwiththeCard.

    7. TheUniversityhasauthorizedtheuseofthePurchasingCardformeeting,event,andhospitalityexpensesuptothecardholdersauthorizedsinglepurchaselimit.Existingcardholdersmayrequestacon igurationchangetotheirPurchasingCardbyhavingtheirdepartmentchairor iscalof icersendanemailtopcard@iastate.edu.

    Hospitalityexpensesareallowedprimarilyforthosefunctionswithanexplicitbusinesspurposewhichincludenonemployees.UseofUniversityfundsforemployeefunctionsisallowableonlyinaccordancewiththeGeneralRulesforISUFunds,publishedbythecontrollersdepartmenton4/3/2014(SeeAppendicesSectionIGeneralRulesforISUFunds).Thecardholdershallprovidetotheircardvalidatordocumentationregardingthebusinesspurposeofallhospitalitytransactions,includingbeginningandendingdates,location,eventtype,andnamesofparticipants.ThisinformationisrequiredforcompliancewithIRSregulationsandmustbeprovidedinordertocompletetheonlinereconciliationprocess.

    Acceptableusesinclude:

    Annualstaffretreats Eventsforstudentrecruitment/retention Meals/hospitalityforpositioninterviewees/candidates Meals/hospitalityforvisitingspeakers Meals/hospitalityforothervisitors/meetingattendees EducationaldevelopmentseminarsandconferenceexpenseshostedbyISU LodgingfornonemployeesvisitingISU Meetingroomexpenses

  • Purchasing Card Program Guide 4 Revised October 2017

    WhiletheUniversityrecommendsISUCateringforcateringneeds,alistofotherauthorizedcaterers/vendorsforISUdepartmentsandorganizationstoselectfromwhenholdingeventsatISUmaybefoundathttp://www.riskmanagement.iastate.edu/food.Withregardtopurchaseofalcoholicbeverages,pleaserefertoUniversitypolicy.WhenthePurchasingCardisusedformeetingandhospitalityexpenses,thefollowingobjectcodesshouldbeused:

    24100 TravelDomesticNonemployee24200 TravelForeignNonemployee36100 HospitalityforSeminars/Events/Conferences36200 HospitalityforMeetingsISUStaffOnly36300 HospitalityforRecruitment36400 HospitalityforFundraising36500 Alcohol36900 OtherHospitality

    Pleasenote:TravelexpenseswillnotbeanacceptableuseofthePurchasingCard