Purchasing Card Program Guide
Revised October 2017
Purchasing Card Program Guide i Revised October 2017
IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMTableofContents
ProgramPoliciesandProcedures Page
I. Introduction‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1
II. Financialpolicy‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2
III. Howitworks‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5
IV. Applicationprocess‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5
V. Orderingprocess‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6
VI. Proofofpurchasedocumentation‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7
VII. Transactionreconciliation‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8
VIII. Segregationofduties‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8
IX. Transactiondiscrepancies,disputesandfraud‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9
X. Reportingalostorstolencard‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9
XI. Employeetransferortermination‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9
Appendices
I. GeneralrulesforISUfunds‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 10
II. Expendituresinvolvingfoundationfunds‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 15
III. Vendingaccountusage‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 16
IV. Iowagiftlaw‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 16
V. Communicationtechnologyallowance‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 18
VI. Salestaxexemption‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 19
VII. Forms‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 21
VIII. Additionalresources‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 21
Purchasing Card Program Guide ii Revised October 2017
Purchasing Card Program Guide 1 Revised October 2017
IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMProgrampoliciesandprocedures
I. Introduc on TheIowaStateUniversitypurchasingcardprogramhasbeendesignedtoallowfortheprocurementoflow‐dollarsuppliesbytheenduserthroughtheuseofacreditcard.Theintentistoeliminatetheneedforsmalldollarpurchaserequisitions,vouchersandreimbursements.Thepurchasingcardprogramisdesignedtoimproveef iciencyinprocessingandcompletinglow‐dollarpurchasesofapprovedcommoditiesfromvendors/suppliersthatacceptaVISAcreditcard.Forthecardholder,usingthePurchasingCardwillprovidequickerturn‐aroundtimeonorders,widespreadacceptancebyvendors,andreducedpaperworkprocessing.ThePurchasingCardconceptisdesignedtodelegatetheauthorityandcapabilitytopurchaselow‐dollaritemsdirectlytotheenduser.ThestandardPurchasingCardmaybeusedforpurchasesofallnon‐restricted(acceptable)commodities(seeSectionII.3.–FinancialPolicy).ThePurchasingCardwithhospitalityrightsmayalsobeusedforpurchaseslistedinSectionII. .–FinancialPolicy.EachPurchasingCardisissuedtoanamedindividualandtheUniversityisclearlyindicatedonthecardasthecorporatebuyerofproductsandservices.ThePurchasingCardisnottobeusedforpersonaltransactions.Thisprogramwillenableyoutopurchaseapprovedcommoditiesdirectlyfromvendors/suppliers.PaymentforallPurchasingCardtransactionsisperformedelectronically,whicheliminatestheneedtoprocessvendorinvoicesandtoissuechecksforpaymentofeachinvoice.WhenusingthePurchasingCard,chargesmaybedistributedamongmultipledepartmentalaccountandexpenseobjectcodecombinations.Procurementservices,accounting,andtheinternalauditof icewillmonitortheperformanceofthePurchasingCardProgram.Questionsorconcernsregardingpolicyshouldbedirectedto: CoryHarms,DirectorofProcurementServices 515‐294‐2591 clharms@iastate.eduQuestionsaboutPurchasingCardprocedureorthereconciliationsystemshouldbedirectedto: Procurementserviceshelpdesk 515‐294‐1308 [email protected] LesleyLackore,ProgramAdministrator 515‐294‐4589 [email protected] ShariRussell,ProgramCoordinator 515‐294‐4573 [email protected] StacySassman,AssociateDirectorofProcurementServices 515‐294‐9390 [email protected] KristieRomsdahl,ProgramCoordinator 515‐294‐1308 [email protected]
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 Rentalofhigh‐value(>$5000)orhigh‐risk
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 Itemsfromon‐lineauctions Laboratoryanimals,livestock,animalcagesand
aquariums Leases/rentaloflandand/orof icespace Pharmaceuticalsanddrugs Radioactivematerialsandhazardousmaterials
Additionalrestrictionsforcardholderswithouthospitalityrights
Hospitalityexpenses Mealsandfoodforconsumption Entertainmentexpenses Interviewexpenses HotelroomsforvisitorstotheUniversity
II. Financial Policy
1. ThePurchasingCardisavailabletoallfacultyandstaffofIowaStateUniversitywiththeapprovaloftheirrespectivedepartmentchairordirectoranddean,vice‐presidentorprovost.AllcardholdersmustsignandacceptthetermsandconditionsoftheIowaStateUniversityPurchasingCardProgramCardholderAgreementandtheStatementofPurchasingCardReceipt.
2. CardholdersareexpectedtopurchaseitemsthatarestockedatUniversityStoreswheneverpossible
unlesssubstantialsavingscanberealizedthroughcyBUYorotherUniversitycontracts.ItemsandservicesfromvendorsthatholdcompetitivelybidcontractswithISU(e.g.of icesupplies,computeritems,scienti icandresearchsupplies,copiers,tentrentals,etc.)shouldbepurchasedoncyBUYorontheUniversitycontractswiththevendorratherthanfromvendorsthatcompetedirectlywiththosecontracts(seehttp://www.procurement.iastate.edu/contracts/).VendorsthatcompetedirectlywithcyBUYvendorsorUniversitycontractsshouldonlybeusedaftercontactingProcurementServices(515‐294‐[email protected])forapproval.
3. ThePurchasingCardmaynotbeusedforthefollowingtransactions:
Purchasing Card Program Guide 3 Revised October 2017
4. AllpurchasetransactionsprocessedagainstthePurchasingCardmustbemadebytheindividualtowhomthecardisissued.Thecardistobeusedonlybythenamedcardholderandisnottobeloanedtoanotheremployee,orotherperson.Thecardholderhasfullliabilityforanyimproperchargesthatresultfromallowingotherstousethecard.
5. Attimes,Universitypurchasesmayresultincashorcash‐likeincentives.Thecashand/orincentivesare
thepropertyoftheUniversityandmaynotbeusedforpersonalgain.Examplesofsuchincentivesinclude,butarenotlimitedto:rebates,giftcards,two‐for‐onepurchasesandspendrewards.TheUniversityrecommendsthatcardholdersnotparticipateinthesepromotionaloffers.Itistheresponsibilityofthecardholder’sdepartmenttobeassuredthatanymonetaryorcashincentiverewardreceivedasaresultofanIowaStateUniversitypurchasebecomesthepropertyoftheUniversity.
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,andhospitalityexpensesuptothecardholder’sauthorizedsinglepurchaselimit.Existingcardholdersmayrequestacon igurationchangetotheirPurchasingCardbyhavingtheirdepartmentchairor iscalof [email protected].
Hospitalityexpensesareallowedprimarilyforthosefunctionswithanexplicitbusinesspurposewhichincludenon‐employees.UseofUniversityfundsforemployeefunctionsisallowableonlyinaccordancewiththeGeneralRulesforISUFunds,publishedbythecontroller’sdepartmenton4/3/2014(SeeAppendicesSectionI‐GeneralRulesforISUFunds).Thecardholdershallprovidetotheircardvalidatordocumentationregardingthebusinesspurposeofallhospitalitytransactions,includingbeginningandendingdates,location,eventtype,andnamesofparticipants.ThisinformationisrequiredforcompliancewithIRSregulationsandmustbeprovidedinordertocompletetheon‐linereconciliationprocess.
Acceptableusesinclude: Annualstaffretreats Eventsforstudentrecruitment/retention Meals/hospitalityforpositioninterviewees/candidates Meals/hospitalityforvisitingspeakers Meals/hospitalityforothervisitors/meetingattendees EducationaldevelopmentseminarsandconferenceexpenseshostedbyISU Lodgingfornon‐employeesvisitingISU Meetingroomexpenses
Purchasing Card Program Guide 4 Revised October 2017
WhiletheUniversityrecommendsISUCateringforcateringneeds,alistofotherauthorizedcaterers/vendorsforISUdepartmentsandorganizationstoselectfromwhenholdingeventsatISUmaybefoundathttp://www.riskmanagement.iastate.edu/food.Withregardtopurchaseofalcoholicbeverages,pleaserefertoUniversitypolicy.WhenthePurchasingCardisusedformeetingandhospitalityexpenses,thefollowingobjectcodesshouldbeused:
24100 Travel‐Domestic‐Nonemployee24200 Travel‐Foreign‐Nonemployee36100 HospitalityforSeminars/Events/Conferences36200 HospitalityforMeetings‐ISUStaffOnly36300 HospitalityforRecruitment36400 HospitalityforFundraising36500 Alcohol36900 OtherHospitality
Pleasenote:TravelexpenseswillnotbeanacceptableuseofthePurchasingCardandwillcontinuetobetheresponsibilityoftheUniversityemployee,andreimbursablebyprocessingarequestthroughtheemployeereimbursementsystemforassessmentoftaxablemeals.
8. PurchasingCardtransactionsfornon‐restricted(acceptable)commoditiesmaynotexceedthe
cardholder’sauthorizedsinglepurchaselimit,includingalldelivery,shippingand/orhandlingcharges(seeSectionV—Orderingprocess).
9. Purchasesmustbefortheuseandbene itoftheUniversity.NOPERSONALPURCHASESAREALLOWED.
PersonalpurchasesmadewiththePurchasingCardmustbechargedtothecardholder’sU‐Billbythereallocatorusingtheon‐linereconciliationsysteminAccessPlus.
10. Itisthecardholder'sresponsibilitytoprovideallreceiptsanddocumentationtothecardvalidatorto
maintainforthedepartmentforone(1)yearfromthetransactiondateinpaperform,thenforanadditionalnine(9) iscalyearsinthep‐cardattachmentimagingsysteminaccordancewiththeUniversity’sRecordRetentionPolicy.Thecardholdershallprovidedocumentationregardingthebusinesspurposeofalltransactions.Forhospitalitytransactions,thecardholdershalladditionallyprovidetheeventtype,beginningandendingdates,location,andnamesofparticipants.
11. Itisthecardholder'sresponsibilitytoreportalostorstolencardimmediatelyto:
thePurchasingCardProgramAdministratorat515‐294‐4589,and theISUPublicSafetyOf iceat515‐294‐4428.
12. Itisthecardholder'sresponsibilitytorequestexemptionofsalestaxthroughtheproperuseofthe
University'ssalestaxexemptionnumber.13. ThecardreallocatorisresponsibleforensuringthattheproperUniversityaccount(s)andexpenseobject
code(s)arechargedforpurchases.Anyaccountmaybeusedforreallocation,withtheexceptionofCampusOrganizationaccounts(206‐00‐35).
14. Itisthedepartment'sresponsibilitytoattempttoresolveadiscrepancywithavendorwithinten(10)
daysofreceiptofpurchase.Ifaresolutionisnotpossible,thedepartmentmustcontactthePurchasingCardProgramAdministratorwithsupportinginformationwithinthirty(30)daysofthetransactionpostdate.
Purchasing Card Program Guide 5 Revised October 2017
15. ViolatinganyofthesepoliciesmayresultintheimmediateterminationoftheprivilegetousethePurchasingCard.Non‐adherencetoanyoftheproceduresenumeratedintheAgreement,theUserGuide,ortheStatementofPurchasingCardReceiptwillresultinrevocationofindividualcardholderprivilegesandmayresultinrevocationofalldivisionordepartmentalPurchasingCards.
16. FraudulentuseofthePurchasingCardwillresultindisciplinaryactioninaccordancewiththepoliciesof
ISU’sHumanResourceServices. III. How it works ThePurchasingCardProgramsimpli iestheprocurement/disbursementprocessbyfacilitatingpoint‐of‐saleprocurement.Procurementresponsibilityisdelegatedtotheorderingdepartment,enablinganauthorizedcardholdertoplaceanorderdirectlywithavendor/supplier.ThePurchasingCardProgramprovidesenhancedcontrolforalltransactionsbyproducingimmediatedecisionsonthree(3)speci icauthorizationcriteriaasexplainedbelow.Whenapurchaseauthorizationisrequestedbyavendor/supplieratthepointofsale,theVISAsystemvalidatesthetransactionagainstpre‐setlimitsestablishedbyprocurementservicesinconjunctionwithdepartmentadministrators.AlltransactionsareapprovedordeclinedbasedonthefollowingPurchasingCardauthorizationcriteria:
Singlepurchaselimit,nottoexceed$4,900. Spendinglimitpermonthlycycle,upto$15,000. Approvedmerchantcommoditycodes.
IV. Applica on process CompletionoftheIowaStateUniversityPurchasingCardProgramonlineapplicationbytheapplicant’sdepartmentp‐cardcoordinator,andattendanceatanorientationsessionarerequiredtoobtainaPurchasingCard.ThecardisavailabletoallfacultyandstaffofIowaStateUniversitywiththeapprovaloftheirrespectivedepartmentchairordirectoranddean,vice‐presidentorprovost.
GraduateassistantsmaybeeligibletohaveaPurchasingCardasauthorizedbythedepartmentchairordirectoranddirectorofprocurementservices.Casualhourly(XH)employeesarenoteligibletohaveaPurchasingCard.YourpersonalcredithistorywillinnowaybeaffectedbytheISUPurchasingCard.Monthlystatementswillbepaiddirectlybyelectronicfundstransfer.EachnewPurchasingCardissuedwillbesenttoprocurementservices.Cardholdersandindividualsassignedtocompletetheonlinereconciliationprocessarerequiredtoattendanorientationsession.
Existingcardholderswithouthospitalityrightsontheircardwhowanttousethecardformeeting,event,andhospitalityexpensesmusthavetheirdepartmentchairordelegatedp‐[email protected].
Purchasing Card Program Guide 6 Revised October 2017
V. Ordering process
ThePurchasingCardProgramprovidesanotheroptiontotheexistingprocurementproceduresregardingtransactionsforgoodsvaluedat$4,900orless(includingalldelivery,shipping,etc.).Nosinglepurchaseistoexceedthecardholder’ssinglepurchaselimit($4,900orless).Makingmultipletransactionstothesamevendoronthesamedatetobypassacard’stransactionlimitisaviolationoftheCardholderAgreementandStatementofReceipt,signedbythecardholder.Anyevidencethatacardholderhasusedtheseorothermeanstoavoidthetransactionlimitmayresultinthelossofpurchasingcardprivileges.Purchasesofrestrictedcommoditiesandpurchasesofmorethan$4,900shouldcontinuetobeprocessedinaccordancewiththeestablishedprocurement/disbursementpoliciesandprocedures.Additionalinformationaboutprocurementproceduresmaybefoundattheprocurementserviceswebsite,http://www.procurement.iastate.edu/.PleasebecertaintofollowtheseprocedureswhenusingthePurchasingCard:
IdentifyifthepurchaseisappropriateforaPurchasingCardtransaction.Checkthelistofrestrictedcommodities.
Determineifyourtransactiontotalislessthanyourauthorizedtransactionlimit.Ifnot,the
transactionmustbeprocessedinaccordancewithestablishedprocurement/disbursementpoliciesandprocedures,andthecardmaynotbeutilized.
Contactthevendor/supplierand:
StatethatyouarefromIowaStateUniversity,andyouwillbemakingaVISApurchase.
E U ! Ifthevendor/supplierrequeststheUniversity'ssalestaxexemptnumber,pleaseprovide
theappropriatenumber: SalesTax: 1‐85000775M FederalExciseTax 42‐70‐0066Y Ifthevendor/supplierrequestsaUniversitysalestaxexemptcerti icate,requestaformat
http://www.procurement.iastate.edu/home/salestax/tax‐exempt‐form. Placeorder. Givevendor/supplierthePurchasingCardnumberandexpirationdate,andCard
Veri icationValue(CVV),ifrequested. Givevendor/supplieryourname,thedepartmentname,andcompletedeliveryaddress.
(Pleaseprovidecompleteshippingaddress,includingbuildingname,roomnumber,andstreetaddresstoinsureproperdelivery.)Ifthevendorasksforthestatementorbillingaddress,itistheaddressonyourcardstatement(generallyyourdepartmentadministrativeof ice).Contacttheprocurementserviceshelpdeskat515‐294‐[email protected] icinformation.
Purchasing Card Program Guide 7 Revised October 2017
Makesurethattheappropriatedepartmentalpersonnelareawareofyourpurchase,andthatyouhavefollowedalldepartmentalprocedures,includingUniversityrecordretention/documentationrequirements.
Whenreceivingashipment,itistheresponsibilityofthecardholdertopromptlyinspectthe
shipmentinaccordancewithreceiptandinspectionofpurchasedgoods.Incaseofreturns,thecardholderisresponsibleforcoordinatingthereturndirectlywiththevendor/supplierandforcontactingthePurchasingCardProgramAdministratorwithanyunresolvedissues.
Anitemizedcardreceiptmustberetainedaspartofthepurchasetransaction
documentation,asnotedinSectionVI. VI. Proof of purchase documenta on ThePurchasingCardProgramfacilitatespoint‐of‐salepurchases,givingauthorizedcardholderstheabilitytopurchasespeci icgoodsdirectlyfromavendor/supplier.ThePurchasingCardwilleliminatethetimeandeffortspentonprocessingrequisitionsandotherinternalforms, ilingofpurchaseordercopies,distributionandthe ilingofmultiplepaymentvouchers.Withthisauthoritycomestheresponsibilityformaintainingadequatedocumentationatthesourceofthetransaction(withinthecardholder’sdepartment).Itistheresponsibilityofeachdepartmentand/orunittoretainitemizedreceiptsforpurchasingcardtransactionsinaccordancewiththeUniversity'sRecordsRetentionPolicy.OriginaldocumentationMUSTbemaintainedatitssourceandMUSTsupportanauthorized(acceptable)businesspurposeforalltransactionsmadewiththePurchasingCard.Forhospitalitytransactions,thecardholdershalladditionallyprovidetheeventtype,beginningandendingdates,location,andnamesofparticipants.Documentationistobemaintainedforten(10)years(seeSectionII. .).Effective3/1/2014,PurchasingCardreceiptsmustbeuploadedtotheassociatedtransactionintheAccessPlusp‐cardsystem.Supportingdocumentationmightincludethefollowing:
Itemizedcashierreceiptorvendor/supplierinvoice,showingthechargeshavebeenpaidbyusingthecard.
Copyofanitemizedordercon irmationorapplicationwhenavailable. Packingslip(forgoodsreceived). Copyofregistrationform. Certi icateoflostreceipt(seeAppendicesSectionVII‐Forms).
Transactionswillbesubjecttoauditbyprocurementservices,thecontroller’sdepartment,internalauditandStateofIowaauditors.
Purchasing Card Program Guide 8 Revised October 2017
VII. Transac on reconcilia on Theon‐linereconciliationsystemreceivesdailyelectronictransmissionsfromthecreditcardcompanyshowingpostedcardtransactionsbycardholder.
Thepersondesignatedtovalidatetheaccuracyandreceiptoftheitemsassociatedwiththatcard(thevalidator)willbenoti iedbye‐mailthattheyhaveoneormoretransactionstoreview.
Oncevalidated,thetransactionisroutedelectronicallytosomeonewhocanassignorreallocatethecorrectaccountnumbersandobjectcodesplits(wherethisisnotthesamepersonasthevalidator).
Thetransactionwillthenbeforwardedelectronicallytoapersondesignatedtoserveastheapprover,whowillapproveorrejectthetransaction.
Onceapproved,thetransactionismovedintotheaccountingsystemandappearintheKualiFinancialSystem(KFS).
Keepinmindthatthevendorispaidonthepostdate,andthemonthlystatementwillbepaidregardlessofincorrecttotalsordisputedcharges.Donotignorethetransaction(seeSectionIX‐Transactiondiscrepancies,disputes,andfraud).Credittransactionsfordisputedchargeswillbeprocessedinthesamemanneraschargesandre lectedonsubsequentstatements.Remindermessageswillbesentbye‐mailtobothcardholdersandsystemuserswhentransactionshavenotbeencompletedintheon‐linereconciliationsystemwithin30daysofthepostdate.CardholdersmayreviewtheirtransactionsviatheP‐card‐CardholdersystemundertheuBusinesstabinAccessPlus,orcontacttheircardvalidator/reallocatorformoreinformationaboutthestatusofanyoverduetransactions.
VIII. Segrega on of du es Anappropriatesegregationofdutiesrequiresthatatleasttwopeoplearesubstantiallyinvolvedinatransaction.Substantialinvolvementmeansthatapersonotherthanthecardholderisreviewingcardtransactionsforappropriateness,allowability,fundingsource,andbusinesspurpose.Inthepurchasingcardsystem,thissegregationofdutiesmaybeaccomplishedinoneofthefollowingways:
Haveapersonotherthanthecardholdervalidateandreallocatethetransaction. Havetheapproverreviewallp‐cardreceiptsorotherproof‐of‐purchasedocumentation. Utilizeanddocumentpre‐authorizationforp‐cardtransactions.
Procurementservicesrecommendsthatdepartmentsadoptthefollowingproceduresaspartoftheirp‐cardprocess:
First,thattheapproverseethereceiptorotherproof‐of‐purchasedocumentationforallpurchasesthattheyapprove.
Second,thattheoriginalreceiptforallp‐cardtransactionsforadepartmentbekeptinacentrallocation.Thereceiptsshouldnotbekeptinthecardholder'sdesk,forexample,butinalocationaccessibletoapprovers,auditors,andotherstoreview.
Procurementserviceswillconductauditsofthedepartmentalp‐cardprocess,includingappropriatesegregationofduties,retentionoforiginalreceiptsinacentrallocation,andtheapprovalprocesswithregardtoreceipts.
Purchasing Card Program Guide 9 Revised October 2017
IX. Transac on discrepancies, disputes, and fraud UnauthorizedtransactionstounknownvendorsshouldbereportedtothePurchasingCardAdministratorimmediately.Forunrecognizedorincorrecttransactions,thedepartmentshould irstseekresolutionwiththemerchant.Shouldthisproveunsuccessful,thedepartmentshallcontactthePurchasingCardProgramAdministratorwithsupportinginformation.AlldiscrepanciesshallbecommunicatedtothePurchasingCardProgramAdministratorwithin30daysofthepostdate.Yourrequestwillbeinvestigated,and,ifresolutioncannotbeachievedwiththemerchant,sentdirectlytoUSBankforreview.Oncethechargeisdisputed,USBankwillsuspendthechargeandrequestdocumentationfromthemerchant.Ifthemerchantfailstoprovidesuitabledocumentationwithinforty‐ ive(45)days,thedisputedamountwillbecreditedonthenextstatement.Transactionssixty(60)dayspastthestatementdatecannotbedisputedwithUSBankandwillbetheresponsibilityofthecardholder’sdepartment.
X. Repor ng a lost or stolen card IfaPurchasingCardislostorstolen,thecardholder P C A at515‐294‐4589.ItisalsotheresponsibilityofthecardholdertoreportthelossofaPurchasingCardimmediatelytoISU’sPublicSafetyOf iceat515‐294‐4428.Thecardholder’sdepartmenthasfullliabilityforanychargestothecard,priortothetimeitisreportedlostorstolen.ShouldyouneedemergencyassistancefromVISAthatUSBankisunabletoprovide,VISAmaybecontactedat1‐800‐847‐2911.
XI. Employee transfer or termina on TheemployeeoremployingdepartmentmustimmediatelynotifythePurchasingCardProgramAdministratoruponlearningofcardholderterminationsortransfers.Advisethedatethatcardprivilegesneedtobeterminated.ProcurementserviceswillimmediatelynotifyUSBank,therebyprotectingtheUniversitythroughVisa’sLiabilityWaiverProgram.FailuretonotifyUSBankwithintwo(2)daysoflearningofanemploymentstatuschangevoidsthisprotection.TheemployingdepartmentisresponsiblefordestroyinganddiscardingthePurchasingCardoncethecardholderleavestheUniversity/department.DoNOTsendactivePurchasingCardsthroughcampusmail.Additionally,shouldtheemploymentstatusofavalidator,reallocator,approveroranyoftheirproxieschange,theemployingdepartmentshallnotifythePurchasingCardProgramAdministratorimmediately.Theelectronicreconciliationsystemoperateswithcardholderspeci icdatabases,whichincludesthenamesande‐mailaddressesofeachoftheabove.AnyemploymentstatuschangesnotcommunicatedtothePurchasingCardProgramAdministratorwillcausedelaysanderrorsinthereconciliationsystem.
Purchasing Card Program Guide 10 Revised October 2017
Appendices I. General Rules for ISU Funds FromtheController'sDepartment,Allowability&Appropriateness:HowtoKnowifExpensesAreAllowableUpdated12/21/2016http://www.controller.iastate.edu/accounting/allowability.pdfADEQUATEDOCUMENTATION–Itisnotpossibletodeterminetheallowabilityandappropriatenessofanexpenseunlessadequatedocumentationexists.Adequatedocumentationincludesaninvoiceorreceiptthatidenti iesWHATwaspurchased,WHEREitwaspurchased,WHOpurchasedit,andWHENitwaspurchased.Ifallofthisinformationisnotcontainedonthereceiptorinvoiceitself,itneedstobeaddedtotheexplanationontheelectronicdocumentorvoucher,orwrittenonthereceipt/invoice/intramural.The ifth“W,”orWHYitwaspurchased,mustbeaddedtotheappropriatesectionelectronicdocument.OnaKFSDV,SimpleDV,IB,orSB,thisistheExplanation ield.Onanemployeetravelreimbursement,thisistheJusti ication/Description/VacationDayssectionoftheTravelDatesandPurposescreen.Onanemployeenon‐travelreimbursement,thisistheBusinessPurposesectionoftheUpdateNon‐TravelReimbursementscreen.Thedepartmentand/orcollegeareultimatelyresponsiblefordetermininganddocumentingtheallowabilityandappropriatenessofexpenditures.Thedepartmentand/orcollegeareinthepositiontodeterminethebestwaytousetheirfunds.Judgmentonreasonablenessofallexpenditures,andespeciallyinthecaseofhospitality,istheresponsibilityofthecollegeand/ordepartment.Whencashorotherpropertyisgivenouttoresearchparticipants,aResearchParticipantReceiptForm(RPRF)shouldbeattachedinlieuofaninvoice.Whencashorotherpropertyisgivenoutaspartofadrawing,doorprize,orsomeotherpurposeotherthanresearch,aPropertyReceiptFormshouldbeattachedinlieuofaninvoice.APropertyReceiptFormisnotrequiredfor:
lowers(ormemorial/giftinlieuof lowers)giveninconnectionwithanillness,hospitalization,ordeathofanemployeeortheirimmediatefamilymembers;or
giftstodonorsorinternationalvisitors;ormilestonerecognition,retirementorgoing‐awaygifts;ortokennon‐cashitemsortokenresearchincentives(havingavalueof$20.00orless).
UNALLOWABLEEXPENDITURES‐Certaintypesofexpendituresarenotallowablefromanyfundingsource.Examplesofunallowableexpendituresinclude:•Artworkforindividualof icesisconsideredapersonalexpenseandisnotallowablefromanyfundingsource.However,artworkinpublicareasisallowable.•Flowersforbirthdays,holidays,weddings,weddinganniversaries,orbabyshowersarenotallowablefromanyfundingsource.Seethesectionbelowforconditionallyallowablepurchasesof lowers.•Giftsinlieuofpaymentforservicesarenotallowablefromanyfundingsource.Seethesectionbelowforconditionallyallowabletokennon‐cashitems.•Giftstoemployeesforbirthdays,holidays,weddings,weddinganniversaries,orbabyshowersarenotallowablefromanyfundingsource.•Homeinternetreimbursementisnotallowablefromanyfundingsource.Inaddition,cellmodemsprocuredfromanISUcontractedcellularprovidershouldnotbeusedforpersonaluseinplaceofhomeinternetaccess.•Homeof iceexpenses(includingcomputertowers,monitors,andprinters)areunallowablefromanyfundingsourceifISUprovidesof icespaceinanotherlocation.However,ifanappropriatebusinessjusti icationis
Purchasing Card Program Guide 11 Revised October 2017
providedforauniquesituation,the inaldecisionofallowabilityandappropriatenessofhomeof iceexpensescanbedeterminedbythedepartment.Ifanexceptionisgranted,useofISU‐providedresourcesistobeusedstrictlyforISUbusinesspurposesonly.•Parking ines,parkingpermits,library ines,latefees,buspassesforcommuting,and inancechargesarethepersonalresponsibilityofthepersonwhoincursthem.Theyarenotallowablefromanyfundingsource.CONDITIONALLYALLOWABLEEXPENDITURES‐Sometypesofexpendituresareonlyallowablefromcertainfundingsources,orwhentheexpendituresmeetotherconditions:•Alcoholicbeveragesusuallyareonlyallowablefromagency(206)funds,orfromgeneralsupportFoundation(497)fundsinappropriatehostingsituations.IfonlyISUemployeesareattending,only206fundsmaybeused.Otherfundingsourcesmightbeallowableiftheuseisforcooking,research,coursestudy,orcateringprovidedbyanISUdepartmentthatroutinelyprovidescateringservices.ApprovalsanduseofalcoholforeventsinUniversitybuildingsandonUniversitygroundsmustcomplywiththeUniversityPolicyLibrary‐Alcohol,Drugs,andIntoxicants.IfanISUdepartmentputsonaconference,andthefeespaidbytheconferenceparticipantsincludeaneventthatservesalcohol,thenon‐sponsoredfundaccountthatreceivedtheregistrationfeesmayalsobeusedtopurchasethealcoholfortheconference.Itshouldbenotedthatconferencesfundedwithsponsoredfundsdonotallowthepurchaseofalcohol,evenwhenfundedfromparticipantfees.•ClothingSuitableforStreetWeargenerallyisnotallowable.However,shirtsthatcontainthedepartment’slogowornasauniform,foraspeci icevent,orforprogramidentitypurposeswouldbeallowablefromsourcesotherthansponsoredprogramsfunding.Protectiveclothing(e.g.,hardhats,workgloves,hipwaders,orsteel‐toedboots)maybeallowableifrequiredfortheperformanceofanemployee’sjobfromsourcesotherthansponsoredprogramsfunding.ISUlicensedapparelpurchasedforemployeesandeventvolunteerswillbeconsideredallowablefromappropriatefundingsourceswhenthefundingdepartmentdocumentstheISUbusinesspurpose.Validbusinesspurposescouldincludeevent/publicrecognition,marketing,andemployeemorale.ISUlicensedapparelpurchasedfornon‐employeeswithavalidISUbusinesspurposewouldalsobeconsideredallowable.•Coffee,coffeepots,refrigerators,microwaveovens,etc.purchasedexclusivelyforemployeeuseareallowablewhenchargedtoagency(206)fundsorFoundation(497)funds.ThisdoesnotprecludeaunitfrominitiallychargingcoffeetoUniversityfunds,exceptsponsoredprogramsfundingsources,andthencollectingemployeefundstoreimbursetheUniversityaccount.EmployeesshouldnotcontributetoaFoundation(497)forthepurchaseofcoffee,asthiswouldbetakingataxdeductionforapersonalexpenditure.•Con lictofInterestpaymentsmustbepre‐approvedbyPurchasing.•Doorprizes,otherthantokennon‐cashitemstoemployeesanddescribedbelow,thataregivenoutduringanemployeemoraleeventareallowableonlyfromagency(206)funds.Doorprizesorraf leprizesgiventostudentsornon‐employeesatISUeventsareallowableonallfundsexceptsponsoredprogramfunds.Ifthevalueoftheprizeismorethan$20.00,aPropertyReceiptFormmustbesignedbytherecipientandkeptwiththeexpendituredocumentation.•Flowersusedforpublicfunctions,suchasretirementpartiesandconvocations,areallowablefromsourcesotherthansponsoredprogramsfunding.Flowerspurchasedinconnectionwiththeillnessorhospitalization(includingmaternity)ofemployeesareallowableonlyfromagency(206)fundsorgeneralsupportFoundation(497)funds.Flowerspurchasedinconnectionwiththedeathofemployees,theirimmediatefamilymembers,orkeyconstituents(e.g.,donors)areallowableonlyfromagency(206)fundsorgeneralsupportFoundation(497)funds.Amemorialorcashgiftmaybemadeinlieuof lowers,aslongastheamountdoesnotexceedwhattypicallywouldhavebeenspentfor lowers.•Giftsforrecognitionofemployeeachievements(suchasthosepresentedthroughformalawardsprograms),retirements,orgoing‐awayfunctionsareallowable,exceptonsponsoredprogramsfunding.However,thecostofthegiftmustbereasonable.Reasonablenessofcostswouldvarydependingonsuchissuesaspositionlevel,howmanypeopletheemployeeinteractedwith,aswellasthelengthofservicetotheinstitution.Giftstointernationalvisitors,especiallythosefromcertaincultures,arefrequentlyanexpectedcourtesyandareconsideredanappropriateexpenditure,exceptonsponsoredprogramsfunding.
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•Lostkeyswillbechargedtotheemployee’sdepartment,anditisuptothedepartmenttodecidewhethertorecoverfundsfromtheemployeethroughAccountsReceivable.•Personaluseitemsarenotreimbursableexceptwhenallowedfromagency(206)funds.Examplesofpersonaluseitemsincludeparkingpermits,andbuspassesforcommuting.Insectrepellantorsunscreenarenotreimbursableforanindividual,althoughadepartmentthatrequiresitsemployeestodo ieldworkcouldpurchasetheseitemsfordistributionbythedepartment.•Printingandphotocopyingdoneoff‐campusareonlyallowablewhileintravelstatus,forafter‐hoursemergencies,orforprintingthatcannotbeperformedbyon‐campussources.•Tokennon‐cashitemshavingavalueof$20.00orlessgiventoemployeesorstudents,suchasduringanemployeemoraleorappreciationevent,areallowableexceptonsponsoredprogramsfunding.UNALLOWABLEPROCUREMENTMETHODS–PleaseseePurchasing’swebsiteforRestrictionsonDelegatedAuthority.Whiletheexpenditureandthefundingsourcemaybeallowable,formostpurchasesyoumusteithersubmitaWebRequisitionorusetheP‐cardofcyBuy,asemployeereimbursementsandpaymentswithoutapurchaseorderarenotallowed.•Cellphones,cordlessphones,IPphones,andtelephonesmustcomplywithuniversitystandards.CellulardevicesmayonlybepurchasediftheserviceisprovidedthroughaUniversity‐ownedcontractplan.Cellulardevicesassociatedwithapersonally‐ownedserviceplancannotbepurchasedorreimbursedwithanyfundingsource.However,theemployeemaybeeligibleforreimbursementofuseofthecellulardevicethroughtheCommunicationTechnologyAllowanceprogram(seebelow).•Chemicals,controlledsubstances,hazardousmaterials,andradioactivematerialsrequireaWebRequisitiontoallowtrackingofmaterials.•Computersandlaptopsmustmeetcompatibilitystandards.PleasecontactPurchasingforinformationaboutusingcyBUYorTechCyte.•FurnitureandFurnishingsmustmeetstandardizedproductspeci ications.PleasecontactPurchasingabouttheircompetitively‐bidcontracts.•Leases,rentalagreements,oranyothersignedagreementsmustbepre‐approvedbyPurchasing.•Materialscosting$500.00ormorecannotbeprocessedasnon‐travelemployeereimbursements,andmaterialscosting$100.00ormorecannotbeprocessedonaKFSDVorSimpleDV(non‐PO).ProcurementalternativesincludepaymentstovendorsusingaP‐card,WebRequisition,orusingauniversityservicecenter.•Professionalservicesexpectedtobe$2,000.00ormore(includingexpenses)fortheyearrequirebothaProfessionalServicesContractualAgreementandaWebRequisition.•Routineservicescosting$100.00ormorecannotbeprocessedonaKFSDVorSimpleDV(non‐PO),andrequireusingeitheraP‐cardoraWebRequisitioninstead.SELECTEXPENDITURECATEGORIES‐Thefollowingexpenditurescategorieshaveinherentlybeensubjecttomorescrutiny,bothinternallyandwiththepublic.•CellPhonesTheUniversityissuedaCommunicationTechnologyAllowancePolicyandReimbursementProcedures,effectiveJuly1,2009–http://www.controller.iastate.edu/controller/cta.htm.Thepolicyandproceduresoffertwoallowablemethodsforprovidingcellularphoneservicestoeligibleemployees:
•ThroughISUcontractedcellularproviders–ThismethodisforemployeesthatusetheircellulardevicesforprimarilyUniversitybusinessandwhocarryapersonalcellulardeviceforpersonalcallsordonotnecessitatetheuseofacellulardeviceforpersonalcalls.
•ThroughtheuseofaCommunicationTechnologyAllowance(CTA)‐Thismethodisusedprimarilybyemployeeswhodonotwanttocarrytwocellulardevicesandrequiretheuseofacellulardeviceforpersonalcalls.Thismethoddoesnotallowforreimbursementoftheemployee’spersonally‐ownedcellulardevices.TheCTAispaidtotheemployeeasanon‐travelreimbursementthroughtheEmployeeReimbursementSystem.AcopyoftheapprovedCTAformshouldbeimportedasareceiptwhensubmittingthenon‐travelreimbursement.Acopyofthecellphonebillisnotrequiredtobeattachedto
Purchasing Card Program Guide 13 Revised October 2017
thereimbursementrequest.ForemployeeswhodonotmeetCommunicationTechnologyAllowancePolicyeligibilityrequirements,reimbursementsmaybemadeforinfrequentnecessarybusinesscallswherethecallsareidenti iableandjusti iedinwritingANDthecallsresultinadditionalcoststotheemployee’spersonalplan,suchasroamingcharges,minuteoveragechargesortemporaryinternationalaccess.NeitherCTAsnoruniversity‐ownedcommunicationtechnologyplansmaybechargedtofederallysponsoredprojects,exceptwherethecostsmeetthede initionof“unlikecircumstances”andareallowableinaccordancewithOMBCircularA‐21andtheuniversity’sSponsoredProgramsCostingPolicy.Theremaybespeci icrestrictionsontheuseofothernon‐federalsponsoredfundstopayfortechnologycosts.•ContributionsandDonationsDonationsandcontributionsareallowablefromagency(206)funds.However,adonationorcontributionmaybeallowablefromothernon‐sponsoredfundingsourcesifitcoversaspeci icidenti iablecost.IfISUissponsoringaconferencewheretheywillbelistedintheconferenceliteratureasasponsoroftheevent,thechargeshouldbedescribedasadvertising.•EmployeebusinessfunctionsThegreatestuncertaintyregardingallowabilityoftenoccursforeventsinwhichonlyISUemployeesarepresent.Theassociatedcostsmustrepresentalegitimatebusinessexpensewithawork‐relatedpurpose.ThefollowingprovideexamplesofmeetingsattendedonlybyISUemployees.Foodandbeveragesforrecurringfunctionswhereparticipantsareallfromthesamedepartmentshouldbekepttoaminimum.
•Amealmaybeservedwhenthefunctionispre‐plannedandanumberofpeopleareinvolved.Havingfoodservedoncampusvs.diningoutisgenerallyviewedasmorebusinesslikeandlesssocial.Examples:
•Ifthemostconvenienttimeagroupofpeoplecanscheduleawork‐relatedmeetingisoverthenoonhour,providinglunchoncampusisgenerallyappropriate.Recurringcommitteemeetingsinvolvingemployeesfrommanydepartmentswouldfallintothiscategory.Allfundingsources,exceptsponsoredprogramsaccounts,wouldbeallowableforthistypeofexpenditure.
•Iftwoemployeesmeetatarestaurantdowntown,evenifbusinessisdiscussed,thisisgenerallynotappropriate,sincetheindividualswouldnormallyhavelunch.Undersomecircumstanceswhereitistheonlyconvenienttime,agency(206)fundsorgeneralsupportFoundation(497)fundsmaybeused.ForFoundation(497)funds,thebusinesspurposeofthemeetingmustbedocumented,andnoalcoholispermitted.
•Therestaurantusedmustbecommensuratewiththebusinesspurposeofthemeetingandexpensesmustbereasonable.Upscalerestaurantsarenormallyonlyappropriatewhenoutsidersareinattendanceandmakingapositiveimpressionontheguestispartofthebusinesspurpose.
•Employeeparties/picnicsOthergatherings,suchasholidaypartiesoremployeepicnics,shouldonlybeexpensedfromagency(206)orgeneralsupportFoundation(497)funds,andthebusinesspurposemustbeproperlydocumented.Thebusinesspurposeforthesetypesofeventsgenerallyisemployeemoraleorappreciationwhichisnotthesamethingasmilestonerecognition,whichspotlightsaspeci icachievementofanindividualorunit.Forexample,anannualemployeepicnicwouldbeemployeeappreciation,butapicnictocommemoratethe25thanniversaryofthedepartmentwouldbeconsideredmilestonerecognition.•FundraisingSincebuildingrelationshipswithalumniandfundraisingareintegralpartsofUniversityadministration,costsforthesetypesofeventscanfrequentlybepaidfromanysourceexceptsponsoredprogramsfunding.However,anyeventwhereticketsaresoldandtheproceedsusedasfundraisingshouldbecoordinatedwiththeFoundationsothatappropriatetaxreportingtothedonorscanoccur.Withoutthepropergiftreceipt,no
Purchasing Card Program Guide 14 Revised October 2017
portionofthepaymentcouldbeconsideredtaxdeductiblebythedonor.•HospitalitydocumentationHospitalityexpenseswillbeprocessedprovidedthedocumentationincludestheWHO(specifynamesandbusinessrelationshipifnotclear),WHAT,WHEN,WHEREandWHYoftheevent.Itistheresponsibilityofthecollegeand/ordepartmenttoexplicitlystatethebusinesspurposeonallexpendituretransactionsauthorizingpaymentofcosts,especiallyforemployee‐relatedevents.•MembershipsInstitutionalmembershipsthatareofuniversity‐widenature,suchastheAmericanCouncilonEducation,theNationalAssociationofStateUniversityLandGrantColleges,andtheNorthCentralAccreditingAssociation,maybefundedcentrally.Decisionsandfundingofotherassociationmembershipsshouldbemadeatthecollegeanddepartmentallevel.Atthediscretionofthedepartment,personalmembershipsinprofessionalorganizationsmaybepaidifjournalsorotherprofessionalmaterialsrelatingtotheunit’sbusinesspurposeareincludedinthecostofmembership.Membershipsofapurelysocialnaturearenotallowable.Itistheresponsibilityofthecollegeand/ordepartmenttoassurethattheauthorizationorexpenseconformstouniversitypolicyaswellaswithanyothersponsoringagencypolicies.•MilestonerecognitionRetirement,goingawayorothermilestonerecognitionfunctionsaregenerallyconsideredtobeappropriatefromsourcesotherthansponsoredprogramsfundingaslongasthecostsarereasonable.Alcoholisallowablefrom206accounts.Ifnon‐ISUemployeesalsoareattending,generalsupport497accountscanbeused.Theseeventscanbedistinguishedfromapurelysocialfunctionsincetheprimarypurposeoftheeventistorecognizeanemployee(s)forextendedservicetoISUorforspeci icachievementsuchasreceivinganaward.Reasonablenessofcostswouldvarydependingonissuessuchashowmanypeoplethehonoreeinteractedwithaswellastheirlengthofservicetotheinstitution.Inaddition,thenatureoftheexpenseshouldbeconsidered.Cakeatareceptionwouldbeanappropriatecost,butgreensfeesforagolfoutinghonoringaretireewouldnot.Recognitionofpersonalevents,suchasemployeebirthdays,weddings,weddinganniversaries,orbabyshowers,isnotanappropriateexpensefromanyfundingsource.Ifaunitfeelsthisisanimportantevent,thegrouporadministratorinvolvedshouldpaytheexpensespersonally,withoutexpectationofreimbursementfromISU.Recognitionofpersonaleventsfordonorsorotherexternalconstituentsmay,inuniquesituations,suchasthebirthdayofamajordonor,beanappropriateexpensefromagency(206)orgeneralsupportFoundation(497)funds.•Spousal/Signi icantOtherattendanceMealexpensesforanemployee’sspouseorsigni icantotherusuallyarenotallowable.Seeexceptionsbelow.Expensesofthisnatureshouldnotbechargedtosponsoredprogramsfunding.Ifthespouse/signi icantotherofaninterviewcandidateisinattendanceatanISUsponsoredmeal,thentheexpensesforISUemployees’spouses/signi icantotherswouldalsobeallowable.Also,spousal/signi icantotherattendanceatstaffrecognitionfunctionsisgenerallyallowable,asisattendanceatreceptionsforcampusvisitorsorfundraisingeventsifsucheventsaretypicallyattendedbyothersfromoutsideISU.Additionally,spousal/signi icantotherattendanceatameetingwithadonorcoupleisgenerallyallowable.Thetravelandassociatedmealexpensesofspouses/signi icantothers/otherfamilymemberswouldnotbeanallowableexpenseunlessabusinesspurposeexistsand/orspeci icadministrativeapprovalhasbeenreceivedtoincludethoseindividuals.
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II. Expenditures Involving Founda on Funds FromtheController'sDepartment,Allowability&Appropriateness:HowtoKnowifExpensesAreAllowableUpdated12/21/2016http://www.controller.iastate.edu/accounting/allowability.pdfEffectiveOctober1,2002,UniversitydepartmentswererequiredtouseaUniversityaccount(497funds)toexpendFoundationfunds.Exceptionstothisprocessare:
ScholarshipsareprocessedthroughtheOf iceofStudentFinancialAid,utilizingtheFoundationaccountnumberontheStudentAidAwardForm.
CapitalbuildingprojectsaremanagedandbilledthroughtheFacilitiesPlanningandManagement
department.Expensesrelatingtodonorrelationsandfundraisingwherecon identialityisanissuemaybepaiddirectly
bytheISUFoundation.
Allotherexpensesaretobeprocessedusinga497account.ExpensessubmitteddirectlytotheFoundationwillbereturnedtothedepartmentforprocessingbytheUniversityunlesstheyarecon identialitemsrelatedtofundraising.TheFoundationautomaticallyreimbursestheUniversitymonthlyforallexpendituresandchargestheappropriateFoundationaccount.ISUprocurementpoliciesandISUbusinesspurposerequirementsapplytothe497accounts.Hospitalityexpensesrelatedtoalumnievents,employeerecruitment,andexternalrelationsexpensesmaybepaidfromthe497accountsevenifalcoholisserved.Generalpurpose497accountsmaynotbeusedtopurchasealcoholwhenonlyISUemployeesareattending.Expendituresmustcomplywithrestrictions,ifany,placedonthefundsbythedonor.Asalways,adequatedocumentationmustbeprovidedandtheauthorizingadministratormustbepreparedtojustifytheappropriatenessandreasonablenessoftheexpenditure.TheIowaStateUniversityFoundationisa501(c)(3)organizationestablishedsolelytobene itIowaStateUniversity.GiftstotheFoundationaretobeusedtosupportthemissionoftheUniversity.Therefore,expendituresfromFoundationaccountsmustrelatetoaUniversityactivityorfunction,ormustsupporttheUniversity’sadvancement,andareexpectedtobecommensuratewiththeprobablebene ittotheUniversity.Foundationfundsarenotintendedforthepersonalbene itofUniversityemployeesandareexpectedtobeusedprudently.All497expendituresarepublicrecords.Compliancewithdonorintentistheprimarytestofallowability.Thedeterminationoflegitimatebusinesspurpose,orappropriateness,istheresponsibilityoftheDepartmentChair,DirectororDean.QuestionsabouthowtohandleexpendituresfromFoundationfundscanbedirectedtoFinancialAccountingandReporting/ISUController’sDepartment,AccountingOf ice/ISUController’sDepartment,ortheISUFoundationAccountingOf ice.AnyfundsreceivedfromdonorsmustbedepositeddirectlytotheISUFoundation,ratherthantoauniversityaccount.ThiswillenabletheISUFoundationtoperformtherequiredtaxreporting.
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III. Vending Account Usage
Date:June12,2003To:Controller'sInformationNetworkFrom:StephanieFox,AssociateControllerAsmanyofyouknow,thevendingaccountsinthesection/projectsof206‐13‐35arebeingclosedandthebalancestransferredtonew206accountsthatwillbeusedsolelyforyourdepartment.TheadvantageofhavingindividualaccountsisthateachaccountcanbecodedtotheproperdepartmentwhichwillenableyoutoincludeitonreportscreatedinHyperionandalsotouseitinprocessesthatinvolveelectronicrouting.Thesewerenotoptionsundertheoldnumberingscheme.Theothermajorchangeassociatedwiththeconversionisthat,effectivewithJulybusiness,youwillmakepaymentsagainstyourvendingaccountsusingthesameformsandprocessesasareusedforyourotheruniversityfundsinsteadofusingtheCampusOrganizationsVoucher.PaymentswillbeprocessedthroughtheAccountingDepartmentin3606ASBinsteadofCampusOrganizationsAccountingintheMemorialUnion.Thebasicpoliciesregardingallowabilityonvendingaccountswillnotchange.Speci ically:VendingaccountscanbeusedforpurposesdeemedappropriatebyyourDepartmentChairorDirector.SincethesecontinuetobeAgencyfundsinthe206series,suchthingsas lowers,giftsandalcoholwillbeconsideredallowableifdeemedappropriatebythedepartment.2.WhileP‐cardsmaybeusedforpurchasesonthevendingaccounts,thestandardP‐cardrulesprohibitingpurchaseofsomegoodsandservicesstillapply.Theserulescanbefoundathttp://www.procurement.iastate.edu/card/usage.Forexample,giftsmaybepurchasedwithvendingfundsbutgiftscannotnotbepurchasedwithaP‐card.VendingaccountpurchasesofgiftsandotheritemsnotallowableonP‐cardshouldbedoneonanISUVoucher.3. Severalhaveaskedwhetherthe2%administrativefeewillapplytovendingaccounts.Thefeewillbetakenfromthevendingfundsbeforetheyaredistributedtoyourdepartment.Youwillnotseeachargeforadministrativefeeonyouraccounts.Manyofyounoticedthattherehasn'tbeenadistributionofvendingfundsforseveralmonths.Wearecurrentlyworkingwiththenewvendingcontractortogettheinformationneededtomakethedistribution.Youwillreceiveallfundsdueassoonasthisproblemcanberesolved.Yourpatiencewiththissituationisappreciated.Pleasecontactmeifyouhaveanyquestionsonthepoliciesrelatingtotheuseofvendingfunds.Foradditionalinformationonthenewaccountnumbers,contactLisaShoemakerintheControllersDepartmentat515‐294‐5331.
IV. Iowa Gi Law In1992thelegislaturepassedtheIowaPublicOf icialsActwhichamendedthegiftlawinIowaCodechapter68B.Thegiftlawwasfurtheramendedin1993.Thishandbooksetsforthportionsofthegiftlawasamendedin1993andanswerssomecommonquestionsthatmayariseininterpretingthegiftlaw.TheIowaPublicOf icialsActasamendedalsocontainsmanyotherprovisionsoflawrestrictingtheactivitiesofpublicof icialsandemployeesandlobbyists.Thehandbookmaybefoundathttp://www.procurement.iastate.edu/policy/giftlaw.
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FromISUPolicyLibrary—GratuitiesandGifts,Procurement(http://policy.iastate.edu/policy/gratuities/):IntroductionIn1992,theIowalegislaturepassedtheIowaPublicOf icialsAct,amendingthegiftlawinIowaCodechapter68B.Thisactwasfurtheramendedin1993.
PolicyStatementEmployeesoftheuniversityandtheirimmediatefamilymembersshallnot,directlyorindirectly,solicit,accept,orreceivefromanyone"donor,"agiftasde ined.Agiftmeansarenderingofmoney,property,services,discount,loanforgiveness,paymentofindebtedness,oranythingelseofvalueinreturnforwhichlegalconsiderationofequalorgreatervalueisnotgivenorreceived.Employeesmayacceptitemsavailablefreeofchargetomembersofthegeneralpublicandnon‐monetaryandfooditemsworthnomorethanthreedollars.A"donor"includesanyonewhocontractswiththeuniversityorisseekingtocontractwithit.Thisincludespersonsinvolvedinsales,leases,purchases,orothercontracts.FromISUPolicyLibrary‐Gifts(http://policy.iastate.edu/policy/gifts/):IntroductionThispolicyisinaccordancewithcon lictinterestofpublicof icersandemployeesfromChapter68B,CodeofIowa.
PolicyStatementEmployeesoftheUniversityandtheimmediatefamilymembersshallnot,directlyorindirectly,solicit,accept,orreceivefromanyonedonorinanyone‐calendarday,agiftasde inedbelow.
EmployeesoftheUniversityandimmediatefamilymembersofeachshallnot,directlyorindirectly,offerormakeagiftasde inedbelowtoanof icial,employee,localof icial,localemployee,memberoftheGeneralAssembly,candidate,orlegislativeemployeeinanyonecalendarday.
GiftsDe inedAgiftisarenderingofmoney,property,services,discount,loanforgiveness,paymentofindebtedness,oranythingelseofvalueinreturnforwhichlegalconsiderationofequalorgreatervalueisnotgivenandreceived,ifthedonorisinanyofthefollowingcategories:
DonorisdoingorseekingtodobusinessofanykindwiththeBoardofRegents,StateofIowaoraninstitutionitgoverns.
DonorisengagedinactivitiesthatareregulatedorcontrolledbytheBoardofRegents,StateofIowaoraninstitutionitgoverns.
Donorhasinterestthatmaybesubstantiallyandmateriallyaffected,inamannerdistinguishablefromthepublicgenerally,bytheperformanceornonperformanceoftheof icialdutyoftheBoardoranyoftheBoard'semployees.
DonorisalobbyistwithrespecttomatterswithinthejurisdictionoftheStateBoardofRegents.Thede initionof"gift"inChapter68BoftheIowaCodeiswrittenintermsofthegovernmentof icialoremployeesastherecipientofagift.Thestatutealsoprohibitsgovernmentof icialsoremployeesfrommakinggifttoof icialsoremployeesofotherstateagencies,inthecircumstancesdescribedabove.Insuchcases,theemployeeisthedonorandtheotherstateof icialoremployeeisthedonee.
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Giftsarenot:
Campaigncontributions. Informationmaterialrelevanttoapublicservant'sof icialfunctionsasanemployeeoftheUniversity.
Examplesofsuchmaterialarebooks,pamphlets,reports,documents,orperiodicals. Registrationfeesortuitionnotincludingtravel,atwhichtheemployeereceivesinformationrelevanttothe
employees'of icialfunction. Anythingreceivedformapersonrelatedwithinthefourthdegreebykinshipormarriage,unlessthedonor
isactingasanagentorintermediaryforanotherpersonnotsorelated. Aninheritance. Anythingavailabletoordistributedtothepublicgenerallywithoutregardtoof icialstatusoftherecipient. Actualexpensesforfood,beverages,travel,andlodgingforameeting,whichisgiveninreturnfor
participationinapanelorspeakingengagementatthemeetingwhentheexpensesrelatedirectlytothedayordaysonwhichthedoneehasparticipationorpresentationresponsibilities.
Plaquesoritemsofnegligibleresalevaluegivenasrecognitionofpublicservice. Non‐monetaryitemswithavalueoflessthanthreedollarsthatarereceivedfromanyonedonorduring
onecalendarday. Itemsorservicessolicitedorgiventoastate,national,orregionalorganizationinwhichtheUniversityisa
member. Itemsorservicesthatarepartofaconferenceorsimilarmeetingandsponsoredbyastate,regional,or
nationalorganizationofwhichtheUniversityisamember.V. Communica on Technology Allowance FromISUPolicyLibrary‐CommunicationTechnology(http://policy.iastate.edu/policy/communicationtech):IntroductionTheuniversityrecognizesthattheperformanceofcertainjobresponsibilitiesmayrequiretheprovisionofadditionalcommunicationtechnologydevicesorservicesasdeterminedbytheheadoftheemployingunitandinaccordancewithuniversityeligibilityrequirements.Thepurposeofthispolicyistoestablishlimitationsandparametersforfundingcommunicationtechnologydevicesandservices.Thispolicyisalsointendedtopreserveuniversityresourcesandpreventmisuseoffunds.
Communicationtechnologyservicesshallbede inedas:
cellularphonevoice/textmessagingservice, cellularphoneISP(InternetServiceProvider)dataserviceassociatedwithdevicessuchassmartphones
andPDAs,and cellularwirelessmodemsassociatedwithdevicessuchaslaptopcomputersPolicyStatementForeligibleandauthorizedindividuals,theuniversitymayprovide:
Communicationdevicesandservicesthroughoneoftheuniversity'spurchasingcontracts,or Ataxablepayrollallowancetotheemployee,hereinafterreferredtoasaCommunicationTechnology
Allowance(CTA).Amonthlypayrollallowanceisprovidedtohelpcoverthemonthlycostforbusinessuse
Purchasing Card Program Guide 19 Revised October 2017
VI. Sales Tax Exemp on IowaStateUniversity(ISU),asastateeducationalinstitution,isexemptfrompayingstatesalestaxorlocaloptionsalestaxongoodsorservicespurchasedinthestateofIowa.Wearerequiredtopayhotel/moteltaxes.ThestateslistedbelowalsogranttaxexemptstatustoIowaStateUniversityforgoodsorservicespurchasedwhileintheirstate.Asindicatedbelow,aformorcopyofaletterisusuallyrequired.RequestsfortheIowaSalesTaxExemptionformmaybemadeathttp://www.procurement.iastate.edu/home/salestax/tax‐exempt‐form.GoodsorservicespurchasedbyIowaStateUniversitywhileinthefollowingstatesaresubjecttothatstate'ssalestax.GoodspurchasedbyISUandshippedtoanaddressinthesestatesalsoaresubjecttothatstate'ssalestax.
ofanemployee'spersonalcellularvoiceorcellulardataservice.Themonthlypayrollallowanceamountwillbedeterminedperestablishedallowanceandreimbursementprocedures.InconformancewithU.S.taxregulations,allCTAsareconsideredtaxable,withoutexception.Theuniversityassumesnoliabilityforanyemployee‐ownedpersonaldevicesorserviceplans.
EligibilityforCTACommunicationtechnologyservicesmaybefundedifbusinessjusti icationcanbemadebytheemployingunitandfundingisavailable.InordertobeeligibleforaCTA,theemployee'semploymentclassi icationmustbeFaculty,Professional&Scienti icorexemptmerit.Employeesmustmeetatleastoneofthefollowingeligibilitycriteriaforanallowance.
Theemployee'sjobrequireshim/hertospendaconsiderableamountoftimeoutsideofhis/herassignedof iceorworkareaduringassignedworkinghours,requiringregularaccesstocommunicationtechnologies.
Theemployee'sjobrequireshim/hertobereachedeitherasarespondertoemergenciesoncampusortocarryouttheirassignedresponsibilitiesoutsideofnormalworkinghours.
TheCTAisnotintendedforoccasional,incidentaluse,purelyvoluntary/convenientaccess,orwhereneedscanbemetbyadepartmentalpoolofcellulardevicesavailablethroughuniversitycontracts.
FundingLimitationsofCTAUnitshaveauthoritytoestablishmorerestrictivepoliciesandtoreview,question,limit,andrefuse,duetofundinglimitations,requestsforCTAsthatotherwisemeeteligibilityrequirements.
NeitherCTAsnoruniversity‐ownedcommunicationtechnologyplansmaybechargedtofederallysponsoredprojects,exceptwherecostsmeetthede initionof"unlikecircumstances"andareallowableinaccordancewithOMBCircularA‐21,ExhibitC,andtheuniversity'sSponsoredProgramsCostingPolicy.Theremaybespeci icrestrictionsontheuseofothernon‐federalsponsoredfundstopayfortechnologycosts.TheuniversityestablishesCTAlimitswhicharereviewedandadjustedperiodically.
Purchasing Card Program Guide 20 Revised October 2017
IowaStateUniversityistaxexemptinthefollowingstates(formsotherthanIowaareavailableathttp://www.procurement.iastate.edu/home/salestax):Thefollowingstatesdonothaveageneralsalestax:
Colorado Need Iowa form showing Vendor name.
Florida Need copy of Florida exemption certificate.
Idaho Need copy of letter from Idaho.
Illinois Need copy of letter from Illinois.
Indiana Exempt only for conference rooms, meeting rooms and AV equipment. Contact procurement services for form and information.
Iowa Need Iowa form - Contact procurement help desk, 515-294-1308
Kansas Need copy of letter from Kansas.
Kentucky Need copy of letter from Kentucky.
Maine Need copy of Maine exemption certificate.
Massachusetts Need copy of Massachusetts exemption certificate.
Michigan Need to fill out Michigan form and present at time of purchase.
Minnesota Need to fill out Minnesota exemption certificate and present at time of purchase.
Mississippi Need copy of letter from Mississippi.
Missouri Need copy of letter from Missouri.
New York Need completed New York form.
North Dakota Need copy of North Dakota exemption certificate at time of purchase.
Ohio Need completed copy of Ohio blanket certificate.
Rhode Island Need copy of letter from Rhode Island and a copy Iowa exemption certificate.
South Dakota Need copy of letter from South Dakota.
Texas Need completed Texas form - No sales tax is charged on hotel rooms, however ISU is not exempt from state & local taxes on hotel rooms.
Washington D.C. Need copy of letter from Washington D.C.
Alaska May need to pay city or local government taxes.
Hawaii No sales tax, but a gross receipts tax.
Montana
New Hampshire Must pay meals and rooms taxes.
New Mexico No sales tax, but a gross receipts tax; use Iowa form for exemption status.
Oregon
Purchasing Card Program Guide 21 Revised October 2017
IowaStateUniversityisnottaxexemptinthefollowingstates: VII. Forms Thefollowingpurchasingcardprogramformsmaybefoundathttp://www.procurement.iastate.edu/card/forms.
Certi icateoflostreceipt Transactionroutingrecordmaintenancerequest
VIII. Addi onal resources ProcurementServices“HowDoIBuy…”DecisionTree—http://www.procurement.iastate.edu/commodities/StaffList/CommodityAssignments—http://www.procurement.iastate.edu/staff/UniversityPolicyManualRecordsRetention—http://records.policy.iastate.edu/view.php?id=349Controller’sDepartmentGiftCerti icates—http://www.controller.iastate.edu/accounting/giftcerti icates.htmRiskManagementApprovedCaterers—http://www.riskmanagement.iastate.edu/foodTrademarkLicensingOf iceVisualIdentity—http://www.trademark.iastate.edu/units
Alabama Nebraska Utah
Arizona Nevada Vermont
Arkansas New Jersey Virginia
California North Carolina Washington
Connecticut Oklahoma West Virginia
Georgia Pennsylvania Wisconsin
Louisiana South Carolina Wyoming
Maryland Tennessee