Using the Card

Using the Card The Purchasing Card (P-Card) is a VISA credit card issued by US Bank showing the name IOWA STATE UNIVERSITY, the individual cardholder's name, and the ISU department name. The Purchasing Card program is designed to improve efficiency in processing and completing low-dollar purchases of approved commodities from any supplier that accepts a VISA credit card. This program will enable you to purchase approved commodities directly from suppliers. Payment for all Purchasing Card transactions is performed electronically, which eliminates the need to process supplier invoices and to issue checks for payment of each invoice. The card is a privilege granted to the individual by the university, so it is the duty of each cardholder to ensure the responsible use of university funds. The university will seek restitution for any inappropriate charges made to the card. Fraudulent or intentional misuse of the card will result in revocation of the card. Procurement Services, Accounting, and the Internal Audit Office will monitor the performance of the Purchasing Card program. Questions or concerns regarding policy should be directed to Cory Harms , Chief Procurement Officer Phone: 515-294-2591 Email: clharms@iastate.edu Questions or concerns regarding non-policy should be directed to ISU Card Services Phone: 515-294-7024 Email: cardservices@iastate.edu Acceptable Uses The P-Card may be used for purchases of all non-restricted (acceptable) commodities that cost less than the cardholder’s authorized single purchase limit, do not require a signed contract or approval of terms and conditions, and are not available through University stores or University contracts. Each P-Card is issued to the individual named on the card and Iowa State University is clearly indicated on the card as the corporate buyer of products and services. The P-Card is not to be used for personal transactions. The P-Card may be used for conference registration fees if it is not possible to charge the transaction to a travel and hospitality (T&H) card. Fees for optional events such as tours, golf outings and other similar events are considered personal and are not to be charged to the P-Card or the T&H card. Dues or memberships may also be paid with the P-Card providing some benefit is derived by ISU as a result of the membership (see University Policy Library, policy.iastate.edu/policy/memberships/, for further information). The purchase of a membership such as Amazon Prime is considered a reward program and not allowable because these memberships are not limited to ISU business only and can be used for personal purchases. Journal reprints, classified advertising, and subscriptions may be paid with the card. Limitations and Restrictions All purchase transactions processed against the Purchasing Card must be made by the individual to whom the card is issued. The card is to be used only by the named cardholder and is not to be loaned to another employee or any other person. The cardholder has full liability for any improper charges that result from allowing others to use the card. All transactions are authorized or declined based on the following Purchasing Card authorization criteria: Single purchase limit, not to exceed $4,900* (including all delivery, shipping and/or handling charges) Spending limit per monthly cycle, up to $15,000* ** Approved merchant commodity codes *Lower limits may be established at departmental request. **If beneficial to the university a higher monthly limit may be granted. The Purchasing Card may NOT be used for the following transactions: Equipment Items valued at $5,000 or more, tagable for inventory, with a useful life of 1+ year Automatic electronic defibrillators (AEDs) Computers (servers, desktops, laptops, tablets, iPads) (except Apple products at University Bookstore/TechCyte) Copiers Purchases involving trade of ISU property Telephones, cordless telephones, IP phones, cell phones and related equipment (except from contracted suppliers for ISU owned equipment) Employee Travel expenses Airline tickets Hotel rooms (including reservation of rooms) Meals Car rentals Parking fees Gasoline and fuel To external suppliers for items available through University stores, services, and cyBUY Contract Marketplace Printing and photocopying Business cards and letterhead Postal and parcel services Photocopier supplies (including toner cartridges) Cylinder gases and liquid nitrogen Personal items and gifts Items for personal use Gifts benefiting an individual employee (if the funding does not allow such purchases) Donations Services Services requiring a signed contract Rental of high-value (>$5,000) or high-risk equipment Construction services and repair of facilities Professional services Moving services (employee relocation) Telecommunication services (except from contracted suppliers) Items restricted due to standards/reporting issues Package alcohol Controlled substances Computers (servers, desktops, laptops, tablets, iPads) (except Apple products at University Bookstore/TechCyte) Firearms, weapons, and ammunition Furniture, furnishings, and artwork Items for Campus Organizations Items from conflict of interest suppliers Items from online auctions (including Buy It Now type auctions), e.g., eBay, DealDash, eBid, etc. Laboratory animals, livestock, animal cages and aquariums Leases/Rental of land and/or office space Payment to individuals for services through Paypal, Venmo, etc. Pharmaceuticals and drugs Radioactive materials and hazardous materials Cardholders are expected to purchase items that are stocked at University Stores (Central Stores, Chemistry Stores, University Bookstore, Printing Services) whenever possible, unless substantial savings can be realized through cyBUY or other University contracts. Violating any of these policies may result in the immediate termination of the privilege to use the P-Card. Non-adherence to any of the procedures enumerated in the Agreement, the Program Guide, or the Statement of Purchasing Card Receipt will result in revocation of individual cardholder privileges and may result in revocation of all division or departmental P-Cards. Cardholders will be issued an e-mail reminder/warning by Procurement Services for violations. Three violations by a cardholder may result in permanent suspension of card privileges. Fraudulent use of the P-Card will result in disciplinary action in accordance with the policies of Iowa State University Human Resources. Purchases must be for the use and benefit of the University. NO PERSONAL PURCHASES ARE ALLOWED. If any portion of a P-Card transaction is determined to be a personal purchase, that amount must be charged to the cardholder’s U-Bill using the “personal charge on credit card” spend category when completing transaction verification. Non-Compliant Activity Cardholders who have been found to have violated the terms of the cardholder agreement (purchased restricted items, failed to reconcile transactions, shared their card, split transactions to exceed limits, etc.) will be issued an email warning regarding the violation from Procurement Services. This will be documented in their card profile. A cardholder that has three violations may be subject to permanent card suspension. Using the P-Card Ordering Process The Purchasing Card program provides another option to the existing procurement procedures regarding transactions for goods, services and supplies valued at $4,900 or less (including all delivery, shipping, etc.). No single purchase is to exceed the cardholder’s single purchase limit. Making multiple transactions to the same supplier on the same date to bypass a card’s single purchase limit is a violation of the Cardholder Agreement and Statement of Receipt, signed by the cardholder. Any evidence that a cardholder has used these or other means to avoid the single purchase limit may result in the loss of Purchasing Card privileges. Purchases of P-Card restricted commodities and purchases of more than $4,900 (or the cardholder’s single purchase limit) should continue to be processed in accordance with established procurement/disbursement policies and procedures. Methods of procuring items that cannot be purchased with a P-Card might include creating catalog requisitions (cyBUY) or non-catalog requisitions (resulting in a purchase order). Additional information about procurement procedures may be found at the Procurement Services web site: https://www.procurement.iastate.edu/resources/payment-and-procurement-methods . Please be certain to follow these procedures when using the Purchasing Card: Identify if the purchase is appropriate for a P-Card transaction by checking: The list of restricted commodities, To see if the item is available through cyBUY suppliers or other suppliers with competitively bid contracts with ISU. The cyBUY suppliers may be found by initiating a catalog requisition through the Procurement Worklet in Workday. Other University contracts may be found on the contracts page of the Procurement Services website ( https://www.procurement.iastate.edu/contracts/by-supplier ). To see if the item is stocked and may be purchased through University Stores (Central Stores, Chemistry Stores, ISU Bookstore, Printing Services). Determine if your transaction total is less than your authorized single purchase limit. If not, the transaction must be processed in accordance with established procurement/disbursement policies and procedures, and the card may not be utilized. Contact the supplier and: State that you are from Iowa State University, and you will be making a Visa purchase. Emphasize that the University is sales tax exempt! If the supplier requests the University's sales tax exempt number, please provide the appropriate number: Sales Tax: 1-85000775M If the supplier requests a University sales tax exempt certificate, request a form at https://www.procurement.iastate.edu/resources/salestax/tax-exempt-form . Place order. Give supplier the P-Card number and expiration date, and Card Verification Value (CVV), if requested. Give supplier your name, the department name, and complete delivery address. (Please provide complete shipping address, including building name, room number, and street address to insure proper delivery.) If the supplier asks for the statement or billing address, it is generally your office address. Contact the card services help desk at 515-294-7024 or cardservices@iastate.edu for specific information. Make sure that the appropriate departmental personnel are aware of your purchase, and that you have followed all departmental procedures, including University record retention/documentation requirements, which can be found at https://records.policy.iastate.edu/ . A legible, itemized transaction receipt must be retained as part of the purchase transaction documentation. When receiving a shipment, it is the responsibility of the cardholder to promptly inspect the shipment in accordance with procedures for receipt and inspec tion of purchased goods. In case of returns, the cardholder is responsible for coordinating the return directly with the supplier and for contacting the card services team with any unresolved issues. Transaction Verification The cardholder will receive an e-mail and Workday notification for each of their P-Card transactions that are ready to be verified. The notifications will ask whether they wish to complete the verification on their own or have their procurement and expense specialist (PES) complete the verification on their behalf. Transaction verification must be completed within thirty days of the date the transaction posted to Workday. If the cardholder is completing verification on their own, the e-mail and Workday notification will contain a link to navigate to complete the task. To verify a transaction the cardholder will need to: Enter a description of the purchase in the Line Item Description field Enter a Spend Category to classify the type of good or se