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P-Card

Corporate Credit Card Program

(P-Card)

Revised February 2012, March 2013, Oct 2013

 

INTRODUCTION

The College Corporate Credit Card (also called the Purchasing Card or P-Card) program is designed to streamline the purchase and payment of business related goods and services under $2,000, business related travel, meeting expenses and any other business related items for which one would request expense reimbursement. It is very similar to a regular credit card but with more controls.

The P-Card will reduce the number of checks processed by issuing one monthly payment to the College's Corporate Card provider Bank. In addition, the College receives rebate checks based upon the transaction volume processed through this program.

POLICY

Whenever practical, College business related purchases of $2,000 or less should be made using a College P-Card.

All purchases made with the Augustana Corporate Card must be for College related purchases only. It is the Cardholder's responsibility to ensure that the card is used appropriately. Card usage may be audited by the Business Office, and usage privileges may be rescinded at any time. Additionally, disciplinary action up to and including discharge may occur for misuse.

Individuals are personally liable for expenses until validated and approved for payment.  Refer to the College Purchasing and Travel policies for more information about reasonable travel and meal expense.

The IRS requires receipts for purchases of $75 or more. Receipts should be held until statement arrives and the cardholder or designee should compare the receipts to the statements, reconcile online, and forward the receipts and the statement to Accounts Payable in the Business Office.    (See "Receipts", page 3)

Although it is convenient to use the Purchasing Card it is still expected that purchasers will seek a competitive discount whenever possible.

 

PROCEDURES

I.        Issuance and limits

At the request of the Department Chair or Director, and approval by the Controller, cards are issued through the Card Administrator, Tom Schaubroeck at ext. 7616. tomschaubroeck@augustana.edu

Except for written exception by the Card Administrator card limits will be;

$2,000 maximum per transaction limit

$5,000 maximum monthly limit

These limits are subject to budget availability, i.e. if remaining budget is less than the card limit, purchases should be restricted to available budget.

II.       Tax Exemption

The College Corporate Card is Illinois Retail Sales Tax exempt and the exemption number is listed on the front of the card. It is the user's responsibility to remind the vendor of this status at the time of purchase to avoid being charged sales tax

III.     Billing and Cycle dates.

•1.      The College receives a corporate billing statement with the total of all charges as the amount due in full within 7 days of the cycle end date. The Cycle end date is the 10th or next business day after.

•2.      Within 7 business days of the cycle end date, cardholders with active purchases will receive a monthly statement with a zero balance shown as payment due. Purchasing details will be listed in the memo field of each statement. The same items are listed for each cardholder on the corporate monthly statement.

•3.      The cardholder reconciles on the online reconciliation system and returns statement and original receipts to the Business Office no later than the end of the current billing month.

IV.      Process: 

•·     Each card is assigned a default Datatel 15 digit account code. The Cardholder should go to the online reconciliation system and use the pull down menu to assign each charge to the correct expense account, if the default is not the appropriate account. (e.g. default is supplies but charge is to a hotel, change account to travel.)

V.         Receipts - Cardholders must provide receipts for all charges exceeding $50. If your card is audited, you must provide ALL receipts for the period audited regardless of the amount of the charge. Consequently retaining all receipts is the recommended practice.

    1. Obtain a detailed receipt for each purchase. If purchase is made online print a copy of the receipt. If ordered by phone request a faxed or emailed copy of receipt.
    2. Receipts must answer who made the purchase, what was purchased, when was it purchased where was it purchased and why does this purchase qualify as a business expense. Purchaser makes a short note on receipt in response to any unanswered requirements.
    3. Receipt is held in department until end of month when statement is received.
    4. Receipts are matched to statement, and appropriate account codes are edited in the online reconciliation system to reconcile budget adjustments.
    5. Return Statement and original receipts within 7 days to Accounts Payable for entering into Datatel and expense allocation.

VI.        Contracts - Contact Purchasing to be set up to charge orders to p-card through the College's online ordering contracts for  Electrical Items - Office Supplies - Janitorial Supplies - Medical supplies - safety supplies - athletic supplies - lab supplies - photographic supplies -  paint - art supplies -

 

Routinely, card usage audits are performed by Card system administrator or designee and you will be required to validate questionable items as legitimate college expenses.

(Review the Cardholder's guide for details regarding disputes, fraud, and other information)

  

Here is a partial list of items that can be put on the P-card.

 

  • Tangible goods valued at $2,000 or less per transaction.
  • Travel  - (up to $2,000 per purchase with normal limits and higher limits are possible with special approval from Card Administrator or the Controller)
  • Travel related expenses including car rentals, gas, airfare, meals and incidentals.
  • Furniture and equipment less than $2,000.
  • Advertising, marketing or print related - including promotional items and the corresponding printing.
  • Classroom supplies
  • Professional Meeting Allowance expenses
  • Pizza (or other food and beverages) used for your class and purchased from outside vendors.
  • Membership dues and renewals to professional organizations.
  • Registration fees for conferences and training events.
  • Magazine/newspaper subscriptions and advertising.
  • Professional meeting costs. 
  • Break area supplies. 
  • ANY online purchases.
  • Software//Music/other licensing renewals.
  • Rentals.
  • Postage - Postal and Currier services (not college mail).
  • Gifts and gift cards for student rewards or incentives. (gift cards for students require completion of a form listing  card #, date, recipient's name and purpose.)
  • Any other type of purchase for which you might use personal funds and request reimbursements

 

DO NOT USE THE CARD FOR

    • Cash Advances or withdrawals (limited cash withdrawal capability may be temporarily approved by Card Administrator for specific international travel requirements and removed upon trip completion)
    • Personal purchases
    • Capital Equipment expenditures
    • Cars or Vans rented through Facilities
    • Temporary labor or Payroll expenses
    • Gifts or gift cards for employees,