PCard Policy and Procedures
The purpose of this policy is to provide employees with information about the credit card program and to provide a guide for the use of their U.S. Bank issued credit card in a manner which is consistent and fair to each employee, while managing costs and ensuring compliance with Federal and State regulations and College policies.
In an effort to provide employees with an efficient, cost effective method for making small dollar purchases of goods or services as required during the normal course of their duties, or when traveling for approved business purposes, the College has established a credit card program with U.S. Bank.
As a card holder, the employee will have: 1) a flexible and convenient way to pay for goods, services and travel-related expenses, 2) reduced need to request purchase orders and check requests, 3) reduced need to use personal funds and request reimbursement.
How to request a Corporate or Pcard
A Corporate Card (C-Card) should be requested for an employee who will be traveling or conducting other business on behalf on the College, and a Purchasing Card (PCard) should be requested when the employee is responsible to make payments for goods and services purchased on behalf on the College. Please note that personal expenses are not to be paid for with College issued credit cards. Any violator will be subject to disciplinary action.
- Cards are issued in the employee’s name and are paid by the College, but safekeeping over the card is the responsibility of the card holder.
- Sharing of the card is prohibited, even between members of the same department or division of the College.
- Transaction and monthly limits will be authorized by your Supervisor/Budget Authority.
Card holders and their supervisors will be expected to adhere to the guidance set forth in this policy. Any violator will be subject to disciplinary action, including but not limited to credit card revocation and/or the requirement to reimburse the College for any unauthorized charges.
Please note the following guidelines, responsibilities, and expectations.
Responsibilities of the Cardholder:
- Card holders must obtain prior approval for expenses incurred on behalf of the College and paid for with a U.S. credit card, including but not limited to travel and lodging accommodations, conference registration, professional license and membership subscriptions (Allowed 1yr at a time), annual dues, etc.
- Card holders must obtain an itemized receipt for each purchase. Card holders should be especially mindful of this when purchasing meals, as some restaurants will only return the summary receipt with the total and the tip. In this case, a detailed receipt which lists the meals and drinks purchased must be requested and retained.
- All itemized receipts must be attached to the Purchasing Card Authorization Form. The receipts are necessary to substantiate the expenditure and support allowability by the College, donor, other funding agency, and the IRS and will made available for review by the College’s external auditors or other governmental agency as needed.
- In the event that a receipt is lost, card holders must contact the origin of purchase and request a copy. Then, attach it to their PCard reconciliation form.
- All card holders must verify their PCard by creating an expense report of their PCard charges, even if the transaction is a credit (refund) or fraud. These transactions will appear in 3-5 days of the purchase. All appropriate documentation (as noted above) must be attached to the transaction, and the correct budget information (funding source) must be included.
- Under IRS guidelines, qualified travel and entertainment expenses are non-taxable to the employee as long as the employee completes the necessary steps to substantiate the expense within a reasonable time frame as defined by the employer’s ‘Accountability Plan’. Wenatchee Valley College has established 30 days from the date of the transaction as a reasonable time frame.
While we ask employees to process credit card transactions within 7 days once the monthly statement is issued by U.S. Bank, failure to submit a fully completed Expense Report or Purchasing Card verification, including all required documentation, within 30 days of the date of the transaction will result in the expenses being considered taxable to the employee in accordance with IRS regulations. In these circumstances, the College will report taxable amounts to the IRS and the employee will be responsible to pay any applicable taxes. Strict adherence to this policy will be followed.
- All credit card activity, expense reports, and verifications, for all card holders,
will be audited each month by the Business Office, an independent third-party vendor
engaged to review transactions for appropriateness and allowability to ensure that
card holders are following the guidelines as set forth in this policy. A report of
their findings will be prepared and distributed to each Board Member at the conclusion
of their audit.
- The credit card program is intended for Wenatchee Valley College business, therefore U.S. Bank issued credit cards may not be used for personal expenses. If a card holder accidentally uses their U.S. Bank credit card for personal expenses, they should alert their manager and contact the Purchasing Department on how to reimburse the College for the expense. Documentation of reimbursement should be attached to the Purchasing-Card Reconciliation.
- For more detailed information, please review and make sure you understand the guidelines in the Purchasing, Travel and Entertainment Policy prior to purchases, travel and entertainment acquisitions on your card.
- Purchases over $10k must have a completed requisition filled out and submitted for Purchasing to begin the bidding process. Anything I.T. related must have a requisition completed and approved by I.T. before forwarding to Purchasing.
- Prior to making a purchase, ensure that there is not a government contract available to help keep costs down.
- Lost credit cards and fraudulent activity must be reported to U.S. Bank at 800-344-5696. Once reported, please advise Purchasing.
Certain purchases are generally prohibited including but not limited to:
- Gift Cards – Gift cards are considered taxable income to the recipient and in some circumstances are viewed as additional compensation when given to regular or student employees. In the unusual circumstance that the purchase of gift cards is approved by the Fiscal Director, card holders must contact Accounting Services to discuss the purchase and the appropriate process necessary to collect any required tax information and supporting documentation;
- Alcohol purchases are not allowed – Please refer to the Travel and Entertainment Policy. Violators will be subject to disciplinary action.
- Donations or Charitable Contributions – U.S. Bank not-for-profit status is specific to the fulfillment of the College’s mission. Regulations prohibit U.S. Bank from making contributions to other not-for-profit entities that are outside of Wenatchee Valley College’s mission. Contributions made to such organizations could jeopardize the College’s not-for-profit status;
- Hazardous Chemicals and Radioactive Materials – Purchase of these materials require pre-approval by the Safety Director in addition to card holder’s Senior Officer. There are strict federal regulations surrounding such purchases;
- Lobbying costs; Political Contributions – Contributions to political candidates and political parties are strictly prohibited for 501(c)3 organizations. Making contributions would jeopardize Wenatchee Valley Colleges not-for-profit status. Paying for a plate or table at a political dinner or other similar engagement is viewed as a contribution when the cost of the dinner is lower than the amount paid, therefore is also prohibited.
- Controlled substances (prescription drugs, narcotics, etc.);
- Gifts or flowers for individual employees;
- Gifts or prizes to students unless there is a programmatic purpose;
- Travel Insurance;
- Computers/Hardware/Accessories/Extended Warranties and Software – Purchase of IT hardware, software, and other services requires pre-approval by the Director of Technology in addition to the card holder’s Senior Officer, to ensure compatibility with existing systems as well as agreement on future replacement requirements;
- Cash Advances;
- Traffic and/or parking violations, towing, fines, late fees or penalties/interest/finance charges;
- Repairs to personal vehicles when used for College travel;
- Gases, compressed or liquid. Gasoline purchases when mileage is being reimbursed;
- Personal Entertainment expenses (movies, spa visits, golf outings, tours, tickets, optional conference activities not included in the general conference fee);
- Advertisements/recruiting other than through community relations and human resources;
- Capital equipment (single item costing more than $5,000.00);
- Commencement or convocation expenses;
- Consultants/speakers/honorariums/performers/independent contractors;
- Deposits for rental of meeting facilities (lodging, etc.);
- Live animals;
- Maintenance agreements;
- Office furniture;
- Personal purchases;
- Split transactions (dividing purchase to avoid reaching single item or transaction limit);
- Telephones – cellular or desk;
- Travel (lodging, restaurants, airline tickets, etc.);
- Vehicle rental.
The WVC purchasing card program has the following specific default limits:
Single transaction limit: $800.00 including shipping, handling and tax, regardless of the number of items.
Monthly purchase limit: The maximum per card per billing cycle is $2,500.00.
Daily limit: 3 transactions per day. This prevents a lost/stolen card from “going wild” and reduces fraud losses.
Any exception to these prohibitions requires the advance approval of the appropriate Senior Officer and, in some cases, outside authorities such as funding entities, legal counsel, or independent auditors.
Contact Purchasing (firstname.lastname@example.org) if you have any questions about the allowability of a particular purchase or about this this policy.
Fraudulent Use of the Credit Card
The term “fraudulent use” refers to the use of the card with a deliberately planned purpose and intent to deceive and thereby gain a wrongful advantage for oneself or others. In addition to the College receiving reimbursement from the cardholder, any or all of the following actions may occur when fraudulent use of the card occurs:
- Immediate suspension of card privileges.
- Removal of cardholder’s purchasing authority.
- Formal disciplinary action, which may result in the termination of employment.
- Any actions deemed appropriate by the College, including criminal prosecution.
Ways to Save:
- Utilize government contracts. Always check to ensure a promotion is not available. For example, there might be a sale or promotion on an item through Office Depot that is better deal than Office Depot government discount.
- Look for promotions but keep and in mind of a company’s reputation. Amazon, Walmart, Costco, etc. are known for taking care of their customers.
- Ask if there is a bulk or educational discount.
- Compare prices and use price matches. The search engine usually has a “Shopping” search button to compare prices.
- Make sure you are purchasing as close to home as possible to reduce shipping costs.
- Please email the purchasing office with any questions or concerns.