Procurement Card

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 rules contained herein. Failure to adhere to these rules may result in forfeiture of P-Card privileges.

On This Page

Overview Application Process Forms Limits and Restrictions Making Purchases Expense Reporting Returns, Credits, Disputes Roles and Responsibilities Contact

Overview

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 purpose of the 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 include:

  • Reduced need for personal reimbursement and reduced risk of inappropriate reimbursement purchases
  • Faster vendor payments (within 2 business days rather than mailing 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

P-Cards must be for college purchases ONLY. Each card is uniquely assigned to one individual, and only that individual may use it.

Application Process

All SF employees or authorized individuals using funds either from or through the college (as the fiscal agent), designated by the Cost Center Manager, may be permitted to obtain a P-Card. Approval depends on justification of need and the potential cardholder's history of demonstrating fiscal responsibility with college funds. 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 cardholder's department.

How to Apply

  1. Complete a P-Card Application Form and send it to your Cost Center Manager.
  2. The Cost Center Manager will review (and adjust if necessary) the requested limits, sign, 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 Cost Center Manager 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 the 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.
  • Do not record the full card number 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 that 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 Cost Center Manager by the next business day.
  • If a Cardholder ends employment with the college, contact the Purchasing Director for instructions.

Forms

If you need assistance accessing PDFs, contact ITS.

  1. P-Card Application
  2. Missing Receipt Form
  3. Sales Tax Exemption
  4. P-Card Cancelation

Limits and Restrictions

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.
  • Monthly Limit: The maximum total dollar amount of all purchases allowed per 30-day period.

Dollar limits 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.

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.

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

Making Purchases

  • Make sure the vendor accepts Visa and honors sales tax exemption.
  • 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.
  • If necessary, request a quote that includes shipping and any other charges before placing your order, to ensure the transaction falls within dollar limits.
  • The college encourages doing business with small, locally-owned, women-owned, and/or minority-owned businesses where possible.

Shipping

Provide the supplier 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 supplier not to charge your card until the item has been shipped. (Many suppliers do this anyway as a matter of practice.)

Receipts

Request an itemized receipt or packing slip showing no balance due ("zero balance invoice"). 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. Sales tax exemption applies to college purchases only and must not be used for personal purchases.

Emergency Overrides

The P-Card Administrator can temporarily lift dollar limits and/or MCC restrictions for necessary transactions when appropriate. The Cardholder or Administrator must 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.

Reminders

  • Immediate availability over back ordering is preferred. Either wait until all items are available, or order from another supplier.
  • Third party payment entities such as PayPal, Venmo, Square, etc. may not be used.
  • Splitting of purchases to avoid limits is strictly prohibited and may result in loss of P-Card privileges.

Expense Reporting

When a transaction posts to your P-Card, you will be notified in your Workday inbox. As soon as possible, create an Expense Report in Workday via the following process.

  1. In the Expenses app, select Create Expense Report.
  2. Choose Create New Expense Report.
  3. In the Memo field, enter all the information your supervisor needs to approve the purchase.
  4. The Expense Report Date is today's date, not the transaction date.
  5. In the Business Purpose field, select Procurement Card Purchases from the drop-down list.
  6. Check your worktags to ensure the expense will be paid from the appropriate account. If the purchase will be paid for by another department, update the Additional Worktag and all the other worktags will update themselves accordingly.
  7. In the Credit Card Transactions section, select the transactions you want to include (or check the Select All box), then click the OK button to continue.
  8. Use Select Files or drag files to attach your receipt, invoice, or similar documents. If any receipts are lost or otherwise unobtainable, you must fill out a Missing Receipt Form and attach that instead.
  9. Scroll down to enter the transaction date, Expense Item, total amount, and memo. To find the appropriate Expense Item, type a keyword to search for the description in the extensive list.
  10. Confirm the worktags are correct and update if necessary.
  11. Repeat this process with each credit card transaction until are completed with documents attached. You can save the Expense Report for later if necessary. Best practice is to create an Expense Report as soon as a transaction posts.
  12. When the report is ready, select Submit to send it for approval.

The Expense Report will move through the business process for approval by your Cost Center Manager(s) before heading to Accounts Payable for payment. And that's it, you're done!

Expense Report Tips

  • Always check budget availability beforepurchasing items.
  • Each P-Card is set up to default to the Cardholder's default worktags.
  • Assign the appropriate Spend Category to each transaction.
  • Report transactions promptly to avoid backlog and issues with returns or disputes.
  • The transaction post date may differ from the order date.
  • If you received your 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.
  • Scan receipts promptly to prevent loss or damage. Receipts printed on thermal paper will degrade and become illegible over time, so scan or photograph them as soon as possible.
  • 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.
  • If a supplier charges 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 month if possible; otherwise, you may mark the charge as disputed until the credit for sales tax is posted.

Segregation of Duties

A Cardholder must not handle all aspects of the procurement process. Therefore, if a Cardholder is also the Cost Center Manager, their direct supervisor must review and approve all transactions appearing on the card.

Returns, Credits, and Disputes

Once a supplier has shipped items correctly as specified on an order, they have legally complied with their part of the transaction and are not obligated to accept any items for credit or refund. Acceptance of a return by the supplier 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 supplier and follow their return policy, including any reference numbers and/or documentation.
  2. Send the return items to Receiving for shipment. Return shipping, where applicable, is the department's responsibility.
  3. Ensure any credit issued appears as a transaction. If the credit does not appear within 60 days, file the appropriate paperwork for disputed items with PNC Bank.

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.

Disputes

If a cardholder finds a discrepancy on a monthly statement, the cardholder should contact the Supplier and attempt to resolve the problem directly. 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 cardholder is responsible for notifying the Cost Center Manager 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 are responsible for:

  • 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 their Cost Center Manager
  • Notifying the Cost Center Manager promptly of any mistakes or errors
  • Notifying PNC Bank immediately and the P-Card Administrator by the next business day when their card has been lost or stolen
  • Ceasing use of the P-Card according to the cut-off dates established at the end of each fiscal year
  • Surrendering the P-Card upon separation from employment, or at the request or order of the Cost Center Manager or P-Card Administrator
  • Retaining all transaction documentation (i.e. charge tickets, credit slips, invoices, delivery tickets, etc.) sufficient for proper expense reporting, including scanning receipts printed on thermal paper promptly in order to prevent degradation
  • Reporting all P-Card transactions in a timely manner
  • Notifying the P-Card Administrator promptly of any problems (i.e. card denial, sales tax exemption, etc.) experienced when using the card
  • Ensuring the supplier provides a transaction document of some type 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)

Failure to comply with P-Card policy by not submitting required documentation may result in suspension or cancellation of the card. Transactions not supported by proper documentation may become the financial responsibility of the cardholder. Serious or repeated misuse or abuse of the card (including sharing a P-Card or P-Card number with others, inappropriate use, or fraudulent 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

Contact

If your question is not answered in this manual, contact Purchasing.

P-Card Program Administrator: David Shlafer, Director of Purchasing and Auxiliary Services

Backup Administrator: Phil Carver, Purchasing Agent