Procurement Card

The Procurement Card (P-Card) program is intended for departments that make a large volume of purchases at small dollar amounts. It is not currently intended as a replacement for purchase orders.

The following guide contains procedures, policies, and rules pertaining to the P-Card program. Cardholders are required to be familiar with and adhere to all P-Card rules contained herein. Failure to adhere to P-Card rules may result in forfeiture of P-Card privileges. 

On This Page

  1. Overview
  2. Application Process
  3. Limits and Restrictions
  4. Making a Purchase
  5. Monthly Reconciliation
  6. Returns, Credits, and Disputes
  7. Roles and Responsibilities
  8. Forms and Tutorials
  9. Contacts

Overview

The purpose of the Santa Fe College Procurement Card (P-Card) Program is to help departments make small-dollar purchases more efficiently. Eligible transactions up to and including $999.00 can be paid with a P-Card without the need for a purchase order or payment request.

Benefits

  • Reduced need for personal reimbursement and reduced risk of inappropriate reimbursement purchases
  • Faster vendor payments (within two business days rather than the time required to process and mail a check)
  • Reduced volume of POs and checks as well as associated costs (paper, envelopes, postage)
  • Many vendors that will not accept POs will accept a credit card instead

Application Process

All SF employees or authorized individuals using funds either from or through the college (as the fiscal agent), designated by the Budget Authority, may be permitted to obtain a P-Card. Approval depends on justification of need and the potential cardholder’s history of demonstrating fiscal responsibility on the college’s behalf. The P-Card Administrator will discuss potential cardholders with the CFO and the Comptroller prior to approval. Any associated P-Card or other fees charged by the card provider must be paid by the using department.

How to Apply

  1. Complete a P-Card Application Form and send it to your Budget Authority.
  2. The Budget Authority will review (and adjust if necessary) the requested limits, sign the form, and send it to the P-Card Administrator.
  3. If the application is accepted, the Administrator will schedule a training session.
  4. Upon passing the training session exam, the cardholder will sign the Cardholder Agreement, obtain Budget Authority signature, and return it to the Administrator.
  5. The Administrator will order the card and notify the cardholder for pickup. The P-Card will not be released until the Administrator receives the fully signed Cardholder Agreement.

The Administrator has the authority to deny any potential cardholder access to a P-Card based on any prior failure by such individual to follow established Purchasing rules and procedures.

Card Activation

Activate your P-Card by calling the toll-free number on the removable sticker. Call from your office phone and provide the last four digits of their SFID Number (not your SSN!). If the automated system cannot match your request, you will be transferred to Customer Service.

Card Security

  • Sign your card. Do not leave the signature field blank or write anything else except your name.
  • Keep your card in a secure location at all times. Do not share your card information with others.
  • Ensure the full card number is not recorded in any unsecured manner (such as emails, faxes, receipts, invoices, or handwritten notes). Redact such records so that only the last 4 digits of the card are visible.
  • Cardholders are ultimately responsible for all activity on their assigned card. Report fraudulent activity immediately so it can be reversed.
  • Report a lost or stolen card immediately to PNC Bank at 877-558-8814 (24-hour line). Notify Purchasing and your budget authority by the next business day.
  • If a cardholder ends their employment with the college, contact the Purchasing Director for instructions.

Limitations and Restrictions

P-Card purchases must be for college business ONLY. Each card is uniquely assigned to one individual. Transactions charge the main department account and one GLC by default; any changes are done during the monthly P-Card Report.

Transaction Limits

  • Single Transaction Limit: The maximum dollar amount allowed for any one transaction is set by default to $999.00, which includes shipping/handling, installation, and any other added fees.
  • Daily Limit: The maximum total dollar amount of all purchases allowed per 24-hour period.
  • Cycle Limit: The maximum total dollar amount of all purchases allowed per 30-day period.

Dollar limits and restrictions may vary by department and cardholder. Limits may be temporarily increased by the Administrator under certain conditions. Attempting to circumvent limits by splitting transactions is strictly prohibited.

Disallowed Purchases

  • Alcoholic Beverages
  • Awards/Trophies
  • Cash Advances
  • Clothing (other than required uniforms)
  • Controlled Substances
  • Devices Connected to SF Telephone Lines
  • Gift Cards
  • Insurance
  • Inventoried Items (furniture, equipment, computers, or any inventoried item with a cost equal to or greater than $1000)
  • Memberships
  • Personal/Decorative Items
  • Registrations
  • Rent or Leases
  • Services (maintenance, repairs, inspections, Contracts for Personal Professional Services, etc.)
  • Wire Transfers
  • any other items prohibited by law, regulation, and/or policy

MCC Restrictions

The P-Card program is restricted for use with certain types of merchants. The card issuer blocks access to these merchants using the MCC system. Attempting to use a P-Card with a blocked merchant will result in the card being declined. In such cases, contact the Administrator to find out if your purchase is allowable.

Making Purchases

Before Shopping

  1. Make sure the vendor accepts Visa and honors sales tax exemption.
  2. The college encourages doing business with small, locally-owned, women-owned, and/or minority-owned businesses where possible.
  3. When purchasing online, verify the website is secure by looking for a closed lock symbol, unbroken key symbol, and/or web address beginning with https.
  4. When necessary, request a quote that includes shipping and any other charges before placing your order, to ensure the transaction falls within dollar limits.

Shipping

Provide the vendor with the exact shipping instructions including your name, campus address, building/room number, and any other pertinent information. It may also be helpful to provide a reference number (such as "PC" and the last four digits of your card) to indicate the purchase was made with your P-Card. Supporting documentation should clearly indicate that the sale was made by credit card. Advise the vendor not to charge your card until the item has been shipped. (Many vendors do this anyway as a matter of practice.)

Receipts

Request an itemized receipt or packing slip showing no balance due. Full itemization requires a description, quantity, unit cost, and total for each item, plus shipping and any other charges. (General terms like "merchandise" or "supplies" are not acceptable.) If the receipt is unclear, the cardholder must add a detailed description.

Save all receipts and documentation. If no receipt is provided, or if the original is lost, you must complete a Missing Receipt Form for each missing receipt.

Terms/Conditions

Any purchase requiring a signed contract, agreement, terms/conditions, or similar documents must be reviewed by the Purchasing Director before placing the order. College staff are not permitted to sign contracts or financial terms.

Sales Tax

Santa Fe College is tax exempt and will not pay consumer sales tax. The college's tax exemption number is embossed on the face of your card. If you need a copy of the Sales Tax Exemption Certificate, contact Purchasing. This number is for college use only and may not be used for personal purchases.

Emergency Overrides

The P-Card Administrator can temporarily lift, when appropriate, dollar limits and/or MCC restrictions for necessary transactions. The cardholder or Administrator will be required to provide the necessary justification before a temporary lift will be considered. Cardholders must contact the Administrator prior to making such a purchase to request an exception.

Please Note:

  • Immediate availability over back ordering is preferred. Either wait until all items are available from the vendor or order from another vendor.
  • Third party vendors (PayPal, Venmo, Square, etc.) may not be used.
  • Splitting of purchases is strictly prohibited.
  • Invoices must be sent directly to Accounts Payable.

Monthly Reconciliation

Manual Reporting

Cardholder

  1. The monthly billing cycle runs from the 5th of the month through the 4th of the next month. All charges posting during this time will appear on your monthly statement.
  2. Cardholders shall reconcile receipts, invoices, charge slips, and credits to their Monthly Transaction Log each cycle as required. (If there is no activity for the month on the card, a P-Card Report is not required.)
    • If any receipts are lost or not obtainable, the cardholder must fill out the Missing Receipt Form.
  3. Reconcile statements by matching the transactions on the monthly statement against the cardholder's receipts, invoices, charge slips, and credits, verifying (1) the amount of each transaction, (2) the goods have been received, and (3) sales tax was not charged. The total dollar amount of receipts, including any credits issued, must equal the statement total.
  4. Attach the P-Card Monthly Transaction Log to the monthly statement with all receipts, invoices, charge slips, and credits for the transactions listed on the statement ensuring that the dates on the report match the dates on the cardholder’s statement. Forward all documentation to the Budget Authority (or Supervisor if the cardholder is a Budget Authority) for review and approval.
  5. Expense reports and transaction logs are due by the 18th of each month. Transaction logs must be fully completed, signed by the budget authority, and include all receipts and paperwork.

Budget Authority

  1. Review the reconciled report for transaction legitimacy
  2. Sign the report, certifying legitimacy of all transactions
  3. Forward the report to Accounts Payable before the monthly due deadline.

Accounts Payable

  1. Review all P-Card monthly transaction reports to verify appropriate GLC use, transactions match with the respective monthly statement, and all receipts are attached.
  2. Verify that appropriate signatures have been obtained on the transaction log.
  3. If receipts are found to be missing, an email is sent to the cardholder requesting expedition of missing receipt(s) within 24 hours.
  4. At the close of business on the date identified in the timeline an email is sent to the Budget Authority and/or the appropriate VP if receipts still have not been forwarded, warning that on the date as defined in the timeline that their budget will be charged for the purchase(s).

The Office for Finance will store P-Card monthly statements and supporting documentation.

Online Reporting

Cardholders

Online reconciliation is done via SpendNet Navigator. Cardholders will perform monthly Expense Reports with the opportunity to edit transactions, provide brief descriptions, and assign account numbers and GLCs.

SpendNet Navigator (PNC Bank)
(877) 558-8814
commercialcard@pnc.com

  • Check the availability of budget prior to purchasing items. The Accounting system will allow P-Card purchases to be expensed to a department even if there is no budget available.
  • Assign the appropriate GLC for each transaction. If there are questions concerning the correct GL codes, please contact the Purchasing Department at 395-5237 for assistance.
  • Ensure that all transactions are edited and approved promptly as required;
    • Note: The College must pay PNC Bank for all transactions listed on the statement; returns and disputes will be displayed through a credit. All posted transactions will be paid even if they are not reviewed and/or approved.

Accounts Payable

Performs final reconciliation of transactions by comparing cardholder’s monthly statement, P-Card Monthly Transaction Log, and receipts with electronic transaction data, then edits as needed.

Reconciliation Tips

  • The transaction post date may differ from the order date.
  • If you received an order in more than one shipment, the dollar total of the receipts or packing slips from the partial shipments may have been billed as one charge on your statement.
  • If you only received a partial shipment, you should only have a partial charge on your statement. It is illegal for vendors to charge your card for merchandise that was never shipped.
  • A supplier's billing name may be different than the name by which you know them.
  • The appropriate GLC for disputed charges is 69511 P-Card Disputed Charges.
  • Should a vendor charge you sales tax, contact them with the College's sales tax exemption number and ask for a credit. Try to obtain the credit during the current cycle if possible; otherwise, you may mark the charge as disputed until the credit for sales tax is posted.

Each P-Card is set up to default to the department's main account number and one GLC. The GLC for each transaction must be updated when completing the monthly P-Card Report. (Refer to the P-Card Processing Timeline for details.)

Segregation of Duties

A cardholder must not handle all aspects of the procurement process. Therefore, if a cardholder is also a Budget Authority, their direct supervisor must review and approve all transactions appearing on the card.

Returns, Credits, and Disputes

Once a vendor has shipped items as specified on an order, they have legally complied with their part of the transaction and are not obligated to accept for credit or refund any of the items delivered as specified. Acceptance of a return by the vendor is by no means automatic, and a restocking fee may be incurred. The department is authorized to pay said fee.

Returns

It is the cardholder's responsibility to initiate and keep track of returns:

  1. Contact the vendor and follow the vendor's return policy, including any reference numbers or documentation
  2. Send the return items to Receiving for shipment to the vendor (return shipping, where applicable, is the department's responsibility)
  3. Note the return on your P-Card Report
  4. Ensure any credit issued appears on your statement. If the credit does not appear within 60 days, file the appropriate paperwork for disputed items with PNC Bank.

All returns must be indicated on your monthly transaction log.

Credits

If the supplier accepts an item as a return, a credit for this item should appear on the current or following month’s statement. All credits must be indicated on the monthly transaction log.

Disputes

If a cardholder finds a discrepancy on a monthly statement, the cardholder should contact the Supplier and attempt to resolve the problem directly. All disputed items should be indicated on the P-Card Monthly Transaction Log. If a cardholder cannot resolve a disputed item directly with the vendor, the cardholder should complete the appropriate paperwork provided by PNC Bank. The Provider will flag the transaction as “Disputed”. If the dispute process is resolved, the college is not liable and a credit will be issued.

Should a problem arise with a charge, every attempt should be made to first resolve the issue directly, and informally, with the vendor. Review of future statements is vital to ensure that the account is properly credited for returns, credits and disputed charges. The returned, credited or disputed item should be noted on the P-Card Monthly Transaction Log form. The cardholder is responsible for notifying the Budget Authority of resolution of a disputed item.

Examples of disputed charges:

  • Failure to receive goods
  • Defective merchandise
  • Incorrect sales amounts
  • Sales tax charged
  • Altered charges
  • Unauthorized charges
  • Duplicate charges
  • Unprocessed credits

The GLC for disputed charges is 69511 (P-Card Disputed Charges).

Roles and Responsibilities

Cardholders

  • Using the card strictly according to college policies and procedures as set forth in this manual
  • Ensuring adequate budget exists before incurring any charges
  • Buying from local and/or minority-owned businesses whenever advantageous to do so
  • Keeping the card secure at all times, and ensuring no one else has access to it
  • Making only authorized purchases approved by the Budget Authority, and notifying the Budget Authority promptly of any mistakes or errors
  • Notifying PNC Bank immediately and the P-Card Administrator by the next business day when the card has been lost or stolen
  • Ceasing use of the P-Card according to the cut-off dates established for each fiscal year period
  • Surrendering the P-Card upon separation from employment, as well as at the request or order of the Budget Authority or P-Card Administrator
  • Keeping all transaction documentation (i.e. charge tickets, credit slips, invoices, delivery tickets, etc.) sufficient to permit proper reconciliation of the monthly statement, reconciling and submitting them as required to the Budget Authority
    • Failure to comply with P-Card policy by not submitting documentation as required may result in suspension or cancellation of the card. Transactions not supported by proper documentation may become the financial responsibility of the cardholder. DO NOT MUTILATE OR OTHERWISE ALTER ORIGINAL RECEIPTS OR SIMILAR DOCUMENTATION. DO NOT USE TAPE ON THERMAL PAPER RECEIPTS AS THIS CAN ERASE THE RECEIPT OVER TIME.
  • Notifying the P-Card Administrator promptly of any problems (i.e. card denial, sales tax exemption, etc.) experienced when using the card
  • Ensuring that the vendor provides a transaction document regardless of the transaction method used (phone, Internet, mail or facsimile, or in person)
  • Accepting only a credit on the P-Card whenever an item is returned (if for any reason a vendor cannot issue a credit to the card, notify the P-Card Administrator)
    • Serious or repeated misuse or abuse of the card including sharing of a P-Card or P-Card number, fraudulent or inappropriate use will result in the revocation of the card as well as potential disciplinary actions up to and including termination of employment.

Budget Authority

  • Assuming overall responsibility for their respective employees' use of a P-Card
  • Determining the necessity and purpose of each card
  • Identifying potential cardholders and approving the application
  • Requiring the cardholder to attend training sessions
  • Reviewing the reconciled monthly billing statement for overall legitimacy of the transactions, and signing the statement, certifying the legitimacy of the listed transactions
  • Checking to ensure that adequate budget exists before forwarding all documentation to Accounts Payable for payment of statement
  • Verifying that a copy of the records for each cardholder are retained in the Budget Authority’s department, including proper documentation for the required 90-day period after reconciliation has been completed
  • Ensuring that cardholders adhere to all program policies and procedures and revisions thereto
  • Making arrangements for the fulfillment of their duties, with respect to this program, in the event of an absence from the office
    • When purchases are in question, the Budget Authority bears the responsibility for resolving the issue. Suggested remedies include having the cardholder provide a credit voucher proving that the item(s) were returned for credit, or having the cardholder provide the College with a check from their personal account for the full amount of an inappropriate purchase.

Accounts Payable

  • Performing a final online reconciliation process on all P-Card transactions
  • Balancing with monthly ACH payments from college bank account
  • Timely posting of P-Card transactions to the general ledger (with ITS assistance)
  • Verifying that cardholder-keyed department numbers and general ledger codes are
  • Verifying that (generally) no sales tax was paid on transactions.
    • If sales tax was paid, verify that a credit is also in evidence or forthcoming.

Purchasing

  • Recommending suppliers for use based upon current ongoing price agreements, State and local contracts, and established service programs
  • Encouraging the use of minority vendors
  • Monitoring suppliers used to assure that P-Card purchases are processed accurately and that returns are handled efficiently
  • Monitoring products purchased using the P-Card and evaluate future requirements to use in establishing contracts for these items
  • Conducting internal audits of purchases
  • Making P-Card purchases on behalf of a department upon 1) a properly executed requisition and 2) under specific circumstances
    • This is done only on a case-by-case basis and must be pre-approved by the CFO and/or Comptroller.

P-Card Administrator

  • Assuming overall responsibility for the P-Card program
  • Implementing the P-Card program with the assistance of the Office for Finance
  • Maintaining a list of all cardholders, their profiles, and their card account numbers
  • Maintaining Budget Authority sample signatures where necessary
  • Developing and providing cardholder training
  • Administering disciplinary action, in conjunction with the appropriate Department Head/Director and Human Resources personnel, to a cardholder found having intentionally misused their P-Card
  • Authorizing an employee to be issued a P-Card and ensuring that the employee is personally informed of all the terms and conditions imposed with the privilege of using a P-Card, including dollar limitations, restrictions, and policies
  • Notifying cardholders to cease purchasing at the end of the fiscal year according to the cut-off dates established in the year-end memo
  • Requiring cardholders to adhere to all program policies and procedures, and revisions
  • Ensuring that the P-Card program is operated according to the established policies and procedures outlined in this manual
  • Establishing and maintaining internal controls with the assistance of the Office for Finance
  • Periodically reviewing all policies and procedures, forms used and data-processing programs to determine if any need to be revised, enhanced and/or updated
  • Facilitating the issuance, replacement, and cancellation of all P-Cards with the Provider
  • Facilitating any necessary P-Card dollar limitation or restrictions
  • Canceling or overriding MCCs as needed
  • Serving as primary liaison between P-Card users and the Provider, when needed
  • Assuring that no P-Card is reassigned or transferred to another individual
  • Requesting and coordinating any needed data processing changes between the Office for Finance and the Provider
  • Notifying Provider of any person who assumes the Administrator's responsibilities due to the incumbent no longer acting in this capacity, who may act in the behalf of the Administrator during his/her absence
  • Establishing and maintaining communication with cardholders
  • Assisting cardholders with problem resolution if an agreement cannot be reached with a vendor
  • Canceling cards immediately upon employee separation
  • Monitoring program compliance
  • Reviewing audits and reporting apparent discrepancies to cardholder and Budget Authority, when deemed necessary
  • Working with Administration to identify and drive future program application/enhancements
  • Reviewing reports to analyze and monitor card usage
  • Providing guidance to the cardholder regarding any sales tax exemption misunderstandings by vendors
  • Working directly on the cardholder's behalf with the Provider on any fraudulent charges

Forms and Tutorials

Contacts

All questions regarding the P-Card program should be directed to the Purchasing Department. Please check this manual first to see if your question is answered here.

P-Card Program Administrator: David Shlafer, Director of Purchasing and Auxiliary Services (352-395-5230)

Backup Administrator: Phil Carver, Purchasing Agent (352-395-5217)