Purchasing Policies and Procedures
Purchasing Card Program
Effective Date: July 1, 2009
Board Approval: September 9, 2015
1. Purpose
The purpose of the TATC Purchasing Card Program is to establish a more efficient, cost-effective method of purchasing and payment. The program is designed to supplement a variety of processes including petty cash, check writing, low-value authorizations, and small dollar purchase orders. These policies and procedures provide the guidelines under which a cardholder may utilize their Purchasing Card.
2. Policy
All cards are issued per TATC policies. Card usage may be audited and/or rescinded at any time.
The person whose name appears on the Purchasing Card is the only person entitled to use that card.
The cardholder’s signature on the Cardholder Agreement indicates understanding of the intent of the program and agreement to adhere to the guidelines.
Authorized cardholders will receive a TATC Purchasing Card upon submitting a signed Agreement to Accept the Purchasing Card. Cardholders should contact the TATC Fiscal Services Office with questions.
Record-keeping will be essential to ensure the success of this program. State Finance and Purchasing policies require retention of receipts, competitive quotations, packing slips, etc.
Cardholders should remember that they are committing State funds each time they use the TATC Purchasing Card. This is a responsibility that cannot be taken lightly.
3. Procedures
3.1. To Obtain a Card
It is recommended that employees read this policy and procedures section in its entirety before requesting a TATC Purchasing Card.
The employee completes a Purchasing Card Application and gets supervisory approval.
The Vice President of Fiscal Operations must indicate approval by completing the monthly and transaction credit limit, signing the form and processing the request.
A cardholder training session must be attended by the prospective cardholder.
Employees will be given a copy of these policies and procedures at the conclusion of the training session.
When the card is received, the cardholder should sign the back of the card and always keep it in a secure place! The card is the property of the TATC and is only to be used for TATC purchases.
3.2. General Information
The program helps to eliminate the use of small dollar purchases orders, petty cash, requests for checks, and the use of personal funds reimbursed by expense report.
The program is NOT intended to avoid or bypass appropriate purchasing or payment procedures.
The card is not to be used for personal use.
The cardholder will be assigned a monthly and transaction limit based upon the employee’s position and key business purpose.
The program can be used for in-store purchases as well as mail, e-mail, internet, telephone and fax orders.
When items being delivered to the TATC are ordered, the cardholder should notify the Campus Purchasing Agent so the items may be received and delivered.
Each cardholder is responsible for the security of their card and the transactions made with the card. Failure to comply with the guidelines may result in severe consequences, up to and including termination of employment.
3.3. Examples of When the Purchasing Card May Be Used:
Business related food items, subscriptions, seminars
Program supplies, materials, tools
Campus IT supplies
Marketing expenditures
Miscellaneous maintenance requirements
3.4. Examples of When the Purchasing Card May Not Be Used:
Any individual item exceeding $500 unless the cardholder’s assigned single transaction limit permits such purchases.
Any merchant, product, or service normally considered to be inappropriate use of State funds (Many inappropriate MCC codes are blocked).
Capital equipment unless the cardholder’s single transaction limit permits such purchases. (Capital items need to be capitalized, tagged, and entered into the fixed asset system).
3.5. Services
Do not use the card to pay for any professional services. The college needs to collect a W-9 Form from all service providers. The card may be used for repair services from corporations.
Examples of services not allowed: Personal services, Consultants, Attorney fees.
3.6. Some Built-In Restrictions
Each card has an individual credit limit. If the limit is too low, the cardholder may contact the Vice President of Fiscal Operations to re-evaluate it.
Some supplier’s Merchant Category Codes (MCC) have been "blocked." If a card is declined and the cardholder feels it should not have occurred, they may call the 800 number on the card.
For a legitimate business need to use a blocked MCC code, contact Fiscal Operations to coordinate the use of the card with a specific supplier.
3.7. The Purchasing Card Log
The Purchasing Card Log becomes an ongoing record of transactions. The form is provided by Fiscal Operations Services.
A cardholder may retain the detailed receipts in an envelope instead of a log if purchases are only made in person and there is no need to track open orders.
The cardholder must always obtain a receipt. The log records the date, supplier, merchandise purchased, and dollar value. A separate line item is required for each purchase.
The log is the record against which the cardholder will reconcile the Monthly Reconciliation Statement.
3.8. Specific Cost Accounting Needs
The proper fund and class (program) code should be indicated on the Monthly Reconciliation Statement, as well as a complete description of the purchase.
3.9. Reconciliation and Payment
The U.S. Bank Purchasing Card Program carries institutional, not individual, liability.
Invoices will be paid by the Fiscal Services Office. Cardholders will not be required to pay the Monthly Statement using personal funds.
The program does not impact a cardholder’s personal credit rating in any way.
3.10. Detailed Receipts and Reconciliation Process
Cardholders are required to retain all Detailed (Line Item) receipts for goods purchased.
If a purchase is made electronically, the supplier should be asked to include an itemized receipt with the goods when shipped.
Each cardholder will receive and handle the following:
Monthly Reconciliation Statement (from Fiscal Operations): Reconciles all transactions from the previous billing cycle.
The statement must be reconciled against the Purchasing Card Log and/or retained receipts for accuracy.
Each cardholder should attach all detailed receipts, sign the statement, and forward it to their approved Department or Division Manager for review and approval.
Actual payment of a central invoice will be made by the Fiscal Services Office.
3.11. If Cardholder Records Do Not Agree With Statement
First, contact the supplier involved to try to resolve the error. If the supplier agrees, they will credit the account. Highlight the transaction in question on the log.
Second, if the supplier does not agree, contact U.S. Bank Customer Service (800 number on the card) to dispute the charge. The cardholder will submit the information in writing. The amount of the next invoice will be reduced by the disputed item until resolved.
3.12. Disputed Transactions
Any transaction must be identified in writing to U.S. Bank (with a copy to Fiscal Services) within 60 days of the statement date.
Disputes will then be resolved by U.S. Bank within 90 days. If not identified within 60 days, the issue must be resolved between the cardholder’s department and the supplier.
The cardholder is responsible for the transactions and must be able to produce receipts and/or proof.
3.13. Lost or Stolen Cards
If a card is lost or stolen, the cardholder should immediately notify the Fiscal Services Office, and contact U.S. Bank Customer Service.
Written confirmation of cancellation must then be provided by the cardholder to the Fiscal Services Office.
Prompt action can reduce the Center’s liability for fraudulent charges.
3.14. Sales and Use Tax
Cardholders should NOT pay sales tax. The card should state tax exempt on it.
Should a cardholder have additional questions regarding tax, they should contact the Fiscal Services Office for assistance.
3.15. Suppliers Who Do Not Accept the Card
The College encourages suppliers to become involved in the TATC Purchasing Card Program.
Suppliers may contact their local bank or financial institution to become Visa capable and implement the processing of charge card transactions.