Open Menu Open Search

Corporate purchase card (P-Card) policy

Revised June 2023

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. 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. The college also receives rebate checks based upon the transaction volume processed through this program.

Policy

Whenever practical, college-related purchases of $2,000 or less should be made using a 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 Card usage will be audited by the Business Office, and usage privileges may be rescinded at any time. Disciplinary action up to and including discharge may occur for misuse.

P-Cards are issued in the name of the employee and the employee assumes all responsibility for the P-Card.

Individuals are personally liable for expenses on their card until validated and approved for payment. Refer to the college purchasing and travel policies for more information about reasonable travel and meal expenses:

Receipts should be held until statement is available on the 11th of the month, and then the cardholder or designee should compare the receipts to the statements, reconcile online, and send the statement and receipts to accounts payable in the Business Office.

Although it is convenient to use the Purchasing Card, it is still expected that purchasers will follow the established bidding process of the College.

Procedures

Requesting a Purchase Card 

A purchase card can be requested by completing this electronic form. Purchase cards are intended to be issued on a limited basis to those employee who frequently purchase items on behalf of the College.

The Director of Procurement will approve the request based on the need for the card and applicability of the P-Card to satisfy the needs. If the request is approved, it can take up to two weeks for the P-Card to be received by the Business Office. The Director of Procurement will contact the new cardholder when the card is ready to be picked up. The cardholder will also need to sign a purchase card agreement in order to pick up their card.

I. Issuance and limits

Cards are issued according to the requests of the department chairs or directors and are subject to approval by the Director of Purchasing, Darin Lamont. He may be reached at 309-794-7499.

P-Cards are normally issued with the following limits:

  • $2,000 maximum per transaction limit
  • $5,000 maximum monthly limit

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

II. Tax exemption

The P-Card is Illinois retail sales tax exempt and the exemption number is listed on the front of the card. It is the cardholder'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
  • Monthly statements reflect charges posted from the 11th of the last month to the 10th of the current month.
  • The online system to reconcile your most recent statement must be completed on the 25th of the current month at 4:00 PM.
  • The cardholder must send the statement and receipts to the Business Office by the 25th of the month.
  • Emails are sent on the 11th and 20th of each month to remind cardholders of these due dates.
  • Failure to reconcile expenditures online or to return statements and original receipts to the Business Office in a timely manner will result in suspension of your card.
IV. Process

Each expense must be assigned the appropriate 15-digit account number in the online reconciliation system. The cardholder must use the pull-down menu to assign each charge to the correct expense account if the default is not the correct account (e.g. default is "supplies" but the charge is to a hotel so the account needs to be changed account to "travel"). The cardholder is responsible for reconciling and reviewing expenses. This may be delegated to another staff or administrative employee but should not be delegated to a student. If a P-Card is "loaned" to another employee or student, the cardholder is still responsible for reconciling and reviewing expenses. 

V. Receipts

Cardholders must provide receipts for all P-Card charges. The original (or copy) of each receipt must be provided to the Business Office monthly. The Business Office will maintain all receipts for a minimum of 7 years. Cardholders must:

  • 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.
  • Meal or restaurant receipts must provide a full list of items and payment detail. The cardholder also must note on the receipt who was included in the meal and why the purchase qualifies as a business expense.
  • Receipts must be matched to the statement, and the original receipts and statement must be sent to accounts payable in the Business Office by the 25th of each month.

If a personal purchase was made using your Augustana P-Card or you notice a personal purchase while reconciling your monthly statement, be sure to notify the Business Office as soon as possible. Complete a Business Office Transmittal Form and return it as well as your check made out to Augustana College to the Business Office.

VI. Contracts

Contact purchasing to set up a business account to order the following types of items online through our contracted vendors: office supplies, electrical items, janitorial supplies, medical supplies, safety supplies, athletic supplies, lab supplies, photographic supplies, paint, art supplies.

VII. Audits

P-Card usage audits are performed regularly by the card system administrator or designee, and cardholders will be required to validate questionable items as legitimate college expenses. Cardholders should be prepared to answer questions from the Business Office in regards to who made the purchase, what was purchased, when it was purchased, where it was purchased and why does this purchase qualify as a business expense. 

Here is a partial list of items that can be paid for with a P-card:

  • Tangible goods valued at $2,000 or less per transaction
  • Travel up to $2,000 per purchase. 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 if approved by supervisor or cabinet member. 
  • Advertising, marketing or print-related expenses including promotional items and the corresponding printing
  • Classroom supplies
  • Membership dues and renewals to professional organizations
  • Registration fees for conferences and training events
  • Magazine/newspaper subscriptions and advertising
  • Professional meeting allowance costs and expenses
  • Break area supplies
  • Online purchases
  • Software/music/other licensing renewals
  • Rentals
  • Postal and courier services (not college mail)
  • Gifts or gift cards. Gift cards MUST be APPROVED prior to purchase and require completion of the form
  • Any other legitimate college-related expense otherwise not prohibited by this policy (see below)

Do not use the card for:

  • Alcohol unless authorized in advanced by Business Office. 
  • On-campus/Quad Cities-area food (within 45 miles) – for example, internal meetings, staff meetings, award for faculty/admin/staff or students. 
    • Exception: for OSL, Campus Ministries, OISSS, Office of Student Inclusion and Diversity or academic departments for food or beverage that drives turnout or success of the program for students. Augustana Dining Services should be consulted in regards to food provided for student programming in order to ensure proper safety and health guidelines are followed. Dining Service may be able to provide the food. Other food expenses could be approved by cabinet member and/or Director of Dining Services (Food Policy). 
    • Exception: for admissions when meeting with prospective students/families and advancement when meeting with donors. 
  • Cash advances or withdrawals. Limited cash withdrawal capability may be temporarily approved by the card administrator for international travel and removed upon trip completion.
  • Personal purchases
  • Holiday parties and employee events.
  • Travel purchases for a spouse or guest without prior approval by a cabinet member. 
  • Capital equipment expenditures.
  • Local car or van rentals – these should be rented through Facilities.
  • Vehicle moving violations, tolls, fines or parking tickets.
  • Gas/fuel for personal vehicles. Gas/fuel may only be purchased with a P-Card for rental vehicles or college-owned vehicles. Personal vehicle usage is eligible for mileage reimbursement using a travel expense voucher or check request form. Reimbursement for both gas/fuel AND mileage is not allowed.
  • Temporary labor or payroll expenses.
  • Gift cards or gifts for employee recognition or retirement (allowable uses of gift cards are found in the Augustana College Gift Policy).
VIII. Funding sources

This policy is applicable to all funding sources included but not limited to operational / department funds, endowed funds and gift funds. External grant funds may have additional guidelines beyond this policy which can be reviewed with the Business Office. 

IX. Procedures for Violations of the Purchasing Card Compliance Policy

If a cardholder's offense is deemed to be due to fraudulent or willful misuse, the card and cardholder may be terminated immediately. The cardholder's supervisor as well as law enforcement agencies may be notified as appropriate. Non-fraudulent or unintentional violations will be responded to as outlined below. 

Violations may include but are not limited to:

  1. Not returning statement with all receipts to the Business Office in a timely manner
  2. Not reconciling expenses on JPMorgan in a timely manner
  3. Not following the P-Card policies or using the P-Card in a prohibited manner
  4. Personal use of P-Card and not reimbursing the college in a timely manner. 
  5. Personal use of a P-Card found during a Business Office audit
  6. Adhering by P-Card policies is the responsibility of the P-Card holder (name on the card); the cardholder will be responsible for a violation even if another employee was delegated the duties. 
  7. Unapproved incremental spending above budget limits. Approval needs to be provided by Business Office or cabinet. 

First violation: An email notification will be sent to the cardholder and card reconciler designee. They will then need to contact the card administrator for further information on the offense and any training required.

Second violation: An email will be sent to the cardholder, the cardholder’s supervisor, and the card reconciled designee. The departmental chair, director, and/or dean will be copied on the email as well. The cardholder will then meet in-person with the card administrator to discuss the repeated offenses, provide additional training, and determine any necessary corrective actions to be taken.

Third violation: A third violation will result in the immediate termination of the cardholder's P-Card. An email will be sent to the cardholder’s departmental chair, director and/or dean. Additionally, the departmental chair, director, or dean will be required to meet with the director of purchasing and vice president of finance to discuss the department's purchasing privileges.

Repeated or consistent violations over a 2 month period will result in termination of the P-Card. Multiple types of violations in a single month may result in termination of the P-Card. For example, (1) not reconciling expenses (2) not turning in statement with receipts (3) missing receipts may be considered three violations against the policy. 

It is the responsibility of the Business Office to ensure that College resources are being spent appropriately to fulfill the mission of the College.

Repeated offenses of the type listed above, while not deemed to be intentionally fraudulent, remain violations of College policy and subjects the offending employee to disciplinary action, up to and including termination.