Purchasing Card

Revised:    September 20, 2013

Policy

The BYU-Idaho Purchasing Card gives the cardholder advanced authority for official university purchases. Where possible, it should be used in place of departmental hand checks, check requests, petty cash, and purchase orders under $2,500.

All full-time and part-time (non-student) employees are eligible to apply for a card as deemed necessary by their supervisor. When a card is issued, the cardholder is responsible for the following:

o    Security and proper use of the card

o    Reviewing the monthly statements for accuracy - including while away from the University for extended periods of time

o    Forwarding statements and attached support to his/her supervisor for review

o    Forwarding the reviewed statements and attached support to the Accounting Office by the 15th of the month following the statement date

 
A department purchasing card is also available to departments as deemed prudent for use by multiple department employees. The supervisor of the cardholder is responsible for ensuring that the policies above are followed.

When a cardholder terminates employment or retires, his/her card will be canceled.  When Financial Services becomes aware of a change in cardholder responsibility, the card will be inactivated or closed.  An employee may apply for a new card or reactivation by contacting Financial Services. Human Resources is responsible for notifying Financial Services of all terminations, retirements and other position changes in a timely manner.

Procedures

1.    Application forms for a new Purchasing Card are obtained from Financial Services during normal business hours (extension 1991). Each form requires the signature of the proposed cardholder and the custodian or department chair of the General Ledger account number to be charged. If the applicant is also the custodian of the account, his/her immediate supervisor will be required to approve the application.

2.    When the card application is received by Financial Services, the cardholder will be added to an I-Learn training group called Purchasing Card Training. The training is a brief review of the policies and procedures governing the use of the card and includes a test to ensure they are understood. When the card is received by Financial Services from the issuer, the card applicant will be notified that it can be picked up in Kimball 130. A 100 percent score on the test is required before the card will be released to the cardholder. In addition, the Purchasing Card Training and accompanying test will be required to be re-taken each time the card expires and is replaced-every three years. If this is not completed by the card renewal date, the card limit will be decreased to $0 until the training and test are completed.

3.    Once the employee has received his/her card, it should be used in place of other payment methods to buy items (e.g., supplies, subscriptions, professional memberships, and other goods) unless restricted below. Misuse of the card may result in disciplinary action or termination from employment.

4.    The dollar limit is $2,500 per transaction and $10,000 per month unless otherwise approved by the cardholder's supervisor, vice president, the Director of Financial Services, and the Purchasing Director (contact Financial Services to obtain the appropriate form). Temporary exceptions may be granted but require supervisor, Purchasing, and Financial Services approval before the purchase is made.  Please be aware that trying to pay for one item with two transactions to supersede this limit, referred to as "splitting", is a violation of this policy.

5.    The card must not be used to make personal purchases.

6.    The card cannot be used at Automated Teller Machines (ATMs).

7.    The card should not be used for travel expenses. A University Corporate Travel card, obtainable from Financial Services, or a personal credit card should be used for travel expenses.

8.    The card should not be used to purchase capital equipment (over $2,500) or computer equipment. Please refer to procedure number three above.

9. Each cardholder should obtain a receipt or other documentation for each charge to be attached to the monthly statement when received. If the card is used over the phone or by mail where no receipt is available, other documentation and an explanation of the charge should be attached to the monthly statement when it is received. If a receipt is lost or unattainable, a "Lost or Missing Receipt Affidavit" form must also be completed and included with the statement.  This form is available from the Accounting Office.  The business purpose of the purchases should be written on the statement or each receipt by the cardholder.

10. The balance due on all Purchasing Cards is paid each month by the university with the detail of all transactions forwarded electronically to the Accounting Office at BYU-Idaho. In addition, a statement is emailed each month to each cardholder that should be printed and reconciled to.

11. Each cardholder must verify the validity of all purchases on his/her monthly statement, indicate any change in the account or category to be charged for each item, attach supporting receipts or documents, sign the statement, obtain the supervisor's review and signature, and submit the statement with receipts attached to the Accounting Office on or before the 15th of the month. Repeated failure to meet this deadline may result in the cancellation of the Purchasing Card. It is suggested that a copy of the statement be made and retained in the file of the cardholder or account custodian.

12. The cardholder's supervisor has primary responsibility for reviewing the cardholder's use of the purchasing card to ensure purchases are appropriate and applicable procedures are followed. The supervisor's signature on the cardholder's statement is an indication that the review has been performed.

13. Charges for a particular month will not be recorded in the General Ledger accounts until the following month when payment and processing have been completed. The Accounting Office will charge the account(s) indicated on each approved statement when received.

14. The Accounting Office will ensure that all properly signed and approved statements are received from cardholders. If the deadline for turning in the statements (15th of the month) is missed, both the cardholder and supervisor will be notified. An additional notification will be sent on the 20th and a $10 late fee will be assessed to the default account number associated with the card.  If a statement is not received in the Accounting Office by the end of the month, the limit will be reduced and the card may be canceled. If a card is canceled, the Accounting Office will review all charges for 75 days prior to cancellation and all charges afterwards. The Accounting Office will also select several transactions each month for review to ensure proper policies and procedures are followed and that purchases appear appropriate.

15. If a charge on the monthly statement is disputed by the cardholder (either a wrong amount or unknown charge), the cardholder is responsible to resolve this dispute as he/she would with any dispute on his/her own personal account.

  •   If the amount is wrong, the cardholder should call the vendor and asked for clarification or a correction of the error.

  •   If there is an unknown charge, the phone number on the statement or the back of the card should be called and any instructions received should be followed.

  •   A notation should be made on the statement by the cardholder for any disputed charge before sending it to his/her supervisor for approval. The disputed charge will still be made to the custodian's General Ledger account. However, the next statement should have a credit or adjustment which will then be posted to the General Ledger account. The cardholder should watch for any anticipated adjustment and follow through if such adjustment does not appear on the next statement. If further assistance is needed, contact the Financial Services at extension 1991.

  •   If the card is lost or stolen, the cardholder should immediately call 1-888-449-2273 (inside the U.S./Canada) or 1-509-353-6656 (outside the U.S.). Financial Services (extension 1991) should also be notified as soon as possible.

  •   For questions regarding the monthly statement, processing deadline, etc., the cardholder should call the Accounting Office (extension 1997).