Ithaca
College
Purchasing Card Policy
I. Policy Statement
Ithaca College maintains
a purchasing card program that allows authorized individuals to make
specific, business-related purchases of non-travel related goods and
services paid for directly by Ithaca College. Authorized individuals
should make their purchases with an awareness that they are using College
funds, the vast majority of which are derived from student tuition payments.
It is our responsibility to be attentive to the reasonable and effective
use of the resources provided by our students and their families for
their education.
II. Purpose
This policy provides
general guidelines for the appropriate and reasonable expenditure of
Ithaca College funds for non-travel related goods and services.
III. To Whom This Policy Applies
1. Individuals
authorized to make specific business-related purchases of non-travel
related goods and services.
2. Individuals with supervisory responsibilities for Ithaca College
budgets.
3. Individuals who initiate, review, approve, process, or record financial
transactions on behalf of the College.
IV. Responsibility
The President, Vice Presidents, Deans and Directors are responsible
for assuring that within their administrative units or schools:
1. Budgeted funds
are available to meet all non-travel or business related commitments.
2. Proper authorization for purchases is obtained for any commitments
made.
3. All expenditures follow appropriate Ithaca College policies, regardless
of the source of funds.
4. There is recognition of the added conditions placed on expenditures
paid from federal and/or state funds, or from restricted gifts, and
those restrictions are accounted for when expenditures are planned.
V. Overview
Ithaca College established
a Purchasing Card program to provide a convenient, cost effective, and
decentralized method, for individuals whose jobs require them, to make
frequent business-related purchases. By using the Ithaca College Purchasing
Card you can dramatically shorten the payment cycle compared to that
associated with the requisition process. Any individual who has been
authorized to use a purchasing card may initiate a transaction in person,
over the internet, or by telephone, within the limits of this policy,
and receive goods. Payments to suppliers are made via the MasterCard
settlement system. Accounts Payable will make periodic settlements with
the bank.
Each program, department
or division is responsible for designating an appropriate individual
to approve Ithaca College non-travel related expenditures. Generally,
this individual is the Dean, Director and or Department Head. This individual
is responsible to verify that:
• The cardholder
has followed all Ithaca College purchasing policies and procedures.
• All expenditures are reasonable and have a legitimate business
purpose.
• All expenditures are supported by adequate documentation and
are received in a timely manner for processing, and have been reviewed
and approved on a monthly basis.
The Accounts Payable
Department will review the purchasing card policies and procedures on
a regular basis. Revisions may be made as part of the review process.
The Financial Services Office staff will provide training on purchasing
card policies and procedures. All changes and/or revisions will be published
on the Accounts Payable web page and will be effective when issued.
This policy is divided into the following major sections:
•
Types of Purchasing Cards
• Eligibility
and Application Guidelines
• General Purchasing
Card Guidelines
• Cardholder Responsibilities
•
Departmental Coordinator and Supervisor Responsibilities
• Definitions
Types
of Purchasing Cards
A Purchasing Card
is a credit card issued by a financial institution to an organization
to make direct purchases from vendors. The individual named on the card
is authorized to make certain business purchases on behalf of the organization.
Purchasing Card transactions do not require a requisition or purchase
order to complete the transaction. In the event a department has a need
to issue multiple Purchasing Cards it is recommended that a department
card(s) be issued. A department purchasing card is issued in the department’s
name and would be the responsibility of the departmental coordinator.
If you are interested in finding out more about departmental purchasing
cards contact the Accounts Payable department at 274-3808. Ithaca College
has established both an individual purchasing card and a departmental
purchasing card that may be issued based on departmental needs.
Individual
Purchasing Card
Individual purchasing cards are issued to authorized faculty and/or
staff who have been approved to make business related purchases on behalf
of the College. These cards are embossed with the cardholder’s
name on them and may only be used by the cardholder. The cardholder
is responsible for ensuring the safekeeping of this type of card.
Department Purchasing Card
Department cards
are designed to limit the number of purchasing cards that are issued
within any one department. These cards are issued to a specific department
and embossed with the department’s name on the card. The Department
Coordinator, or other designee within the department, is responsible
for ensuring the safekeeping of this type of card. This would most likely
be accomplished by “signing out” the card to an individual
for authorized purchases and then making sure that this card is returned
to the department along with the required supporting documentation for
any purchases made.
Eligibility and Application
Guidelines
Ithaca College benefits
eligible faculty and staff are eligible to apply for a purchasing card
provided their roles require them to make frequent business-related
purchases. Due to liability concerns that potential fraud presents,
departments are expected to limit the number of purchasing cards that
are authorized for issuance to only those employees whose roles require
them to make frequent business-related purchases. **The Purchasing
Card should not be issued to individuals for “just in case”
purchases.
Application
Process
Ithaca College eligible
employees are required to complete the online application process if
they are interested in obtaining an Ithaca College Purchasing Card.
Keep in mind that purchasing cards will only be issued to individuals
whose roles require them to make frequent business-related purchases.
For the credit card approval process to be completed an individual’s
application must be approved by their departmental Director, Dean and/or
Asst. Dean. All approved applications must be forwarded to the Accounts
Payable department for final review and approval. Note: the
Ithaca College Purchasing Card Program Administrator (Manager of Accounts
Payable) has final authority in determining whether an application meets
the suggested guideline specifications.
**Contact the Accounts Payable department if you are interested in
applying for a departmental Purchasing Card.
The Program Administrator
will maintain all records of credit card requests, limits, and cardholder
transfers and lost/stolen/destroyed card information.
On-going Privileges to Use Purchasing Card
In addition to the
initial review and approval by the College Purchasing Card Program Administrator
in determining whether an application meets the suggested guideline
specifications, a regular review of all cardholders’ purchasing
activity will be performed on an annual basis. This review will not
only assist in ensuring compliance with the College’s purchasing
guidelines, but will allow the program administrator to determine the
continued need for a cardholder to carry a College Purchasing Card.
(For example, if during the program administrator’s review
of cardholders purchasing activity, it is determined that a cardholder
has not shown reasonable use of their purchasing card during the fiscal
year their card privileges will be revoked.)
General
Purchasing Card Guidelines
Purchasing Card Restrictions
The College’s
Purchasing Card is designed to provide a convenient, cost effective,
and decentralized method for departments to make business related purchases
for goods and/or services. The single purchase dollar limit on any business
related purchase made using the Purchasing Card is $2,000. Under no
circumstances should a transaction be split into multiple transactions
in an attempt to stay within the single purchase limit of $2,000. Any
such attempt to split transactions for such a purpose will be considered
misuse of the Purchasing Card and the cardholder will be subject to
the consequences outlined below.
Purchasing cards
are issued to cardholders with their name embossed on the front of the
card. Because of this the cardholder is the only individual that is
authorized to make purchases with that card. Any cardholder that shares
or lends his/her Purchasing Card to another employee is considered to
have misused the Purchasing Card and will be subject to the consequences
outlined for misuse of the Purchasing Card.
**Note
that this policy allows for departments to have a more stringent set
of Purchasing Card restrictions than are set forth within this policy.
Unauthorized
Purchasing Card Use
The College’s
Purchasing Card shall not be used for the following types of transactions
or purchases. Note: This list is intended to be representative,
not comprehensive:
• Personal
Purchases
• Cash Advances
• Consultants, Freelancers, or Contractors – individuals
who are hired to perform a specific service or provide highly specialized
advice or professional expertise. There are tax and insurance issues
related to these types of payments. If you are unsure whether or not
an individual is a consultant contact the Program Administrator.
• Capital Assets – a capital asset is an item that is
permanent in nature having a useful life of no less than 5 years,
is tangible, and is held for purposes other than investment or resale
• Needles or Syringes
• Radioactive Materials
• Research Animals
• Pest Control Services
• Security Systems – these systems must be coordinated
through the Ithaca College Campus Safety Office
• Alcoholic Beverages
A cardholder who
makes unauthorized purchases or carelessly uses their Purchasing Card
may be personally liable for the total dollar amount of such unauthorized
use plus any administrative fees charged by the issuing financial institution
in connection with the misuse. The cardholder will be subject to disciplinary
actions as outlined under the misuse section.
Making a Purchase or Return
Purchasing Cards
can be used as payment for business related goods or services from a
“Supplier of Choice” within the guidelines of this policy
and any additional guidelines outlined by your department.
Purchases may be
made in person, over the Internet, by phone, fax, or U.S. Mail.
Cardholders must
always inform the supplier they are using an Ithaca College Purchasing
Card and that Ithaca College is exempt from New York State Sales Tax.
If you are charged sales tax, contact the merchant and obtain a credit
to the card for the amount of the sales tax. Report any supplier who
refuses to honor Ithaca College’s New York State Sales Tax Exemption
Certificate to the Program Administrator.
Cardholders should
utilize the following “checklist” when making a purchase:
1. Confirm that
the supplier accepts MasterCard.
2. Direct
the supplier to include the following information on the shipping
label and packing list:
a) Cardholder’s
name and telephone number
b) Complete delivery address
c) Order Number
3. It is extremely
important that all purchases be sent to the cardholder or department
ordering the merchandise, as this will ensure that the documents necessary
for the record keeping are readily available to the cardholder.
4. If necessary,
advise the individual within your department responsible for receiving
merchandise of the supplier’s name and order number, anticipated
delivery date, number of boxes expected, and carrier (ie. UPS, FedEx,
USPS, etc.)
If items purchased
using the Purchasing Card are found to be unacceptable, the Cardholder
is responsible for obtaining a replacement or correction of the item
as soon as possible.
If the Cardholder
is disputing a charge, he/she must first contact the supplier for resolution.
If these attempts fail, the cardholder is required to complete a Dispute
Form, which may be obtained from the Program Administrator.
Purchasing
for Federal and State Grants
Federal and State
Grants may be audited and are subject to external and internal controls.
It will be the responsibility
of the Cardholder to verify that all Purchasing Card receipts for Federal
and State grants are signed by the Principal Investigator, have appropriate
documentation and approvals, and are in compliance with the College
policies and procedures as outlined in this document.
It is the responsibility
of the Principal Investigator to review and sign all Purchasing Card
receipts for Federal and State grant expenditures. By signing the receipt
the Principal Investigator has ensured that the costs charged to the
grant are allowable, allocable, and reasonable.
Consequences
for Misuse of Purchasing Card
Individuals given
Purchasing Card access by the College and their department are held
accountable for all transactions related to their card. Consequences
for misuse of the Purchasing Card are serious, and may include card
suspension, card revocation, disciplinary action, employment termination
and legal action.
The following responsibilities,
while not all inclusive, are critical and must be followed by all cardholders:
• Review
and approval of all purchasing transactions
• Required supporting documentation and/or receipt for each
purchase, along with required information, must be submitted to the
Department Coordinator within five (5) business days of purchase.
• Use of the Purchasing Card for personal use is strictly prohibited
under any circumstances.
• Insuring that sales tax is not applied to Purchasing Card
transactions. (Note: In the event sales tax is charged on a purchase
the cardholder must supply a supporting statement explaining the circumstances.)
Failure to follow
the above listed responsibilities and any additional responsibilities
that may be listed in this policy will result in a minimum of the following
consequences:
First
Offense: Verbal warning to cardholder and supervisor
Second Offense: Written warning to cardholder, supervisor,
and respective Vice President.
Third Offense: Card Cancellation – privileges
revoked
The
Program Administrator will be responsible for issuing the warning notifications
and card suspension or cancellation.
Cardholder
Responsibilities
In addition to proper adherence of this policy’s purchasing guidelines,
a cardholder is expected to maintain the proper and required documentation
for every purchase made with their Purchasing Card, review their monthly
statement for accuracy, and provide the necessary card security as described
below.
Cardholder
Record Keeping
Cardholders are required
to obtain a receipt or supporting documentation as proof of purchase
for each purchase made. This documentation will be used by the Department
Coordinator to verify and post the purchase online to the departmental
account(s) that the cardholder has indicated on the receipt. Listed
below are the requirements:
- Cardholders must
submit the receipts and/or supporting documentation, with description
and reason for purchase, to their Department Coordinator within five
(5) business days of the purchase.
- Cardholders must
indicate on the receipt and/or supporting documentation the account
number(s) the purchase is to be posted to along with the amount(s)
and cardholders name and departmental phone number.
Failure
to submit the supporting documentation and/or receipt to the Department
Coordinator is considered a misuse of the Purchasing Card and subject
to the consequences as outlined in this policy.
Note: All Purchasing Card transactions are subject to periodic audits
to ensure compliance with the College’s policies.
Review of Monthly Statement
At the end of each billing cycle, the Cardholder shall receive from
the bank a monthly statement of account that will list the purchases
made with their Purchasing Card.
The Cardholder is responsible for reviewing each transaction listed
on the monthly statement for accuracy within five (5) business days
of receipt of the statement. The Cardholder is responsible for reporting
any errors on the statement to their Department Coordinator. The Cardholder
and Department Coordinator, in conjunction with the Program Administrator,
will take the necessary steps to correct these errors.
After reviewing their monthly statement Cardholders must submit the
statement to their Department Coordinator. The Department Coordinator
must obtain signature/approval from the Cardholder’s supervisor
for each monthly statement. The approving supervisor’s signature/approval
of each Cardholder’s monthly statement indicates that the Cardholder
was authorized to make those purchases and they were made in accordance
with applicable procedures.
It is the Cardholder’s responsibility to safeguard their Purchasing
Card and card number. A cardholder must not allow anyone else to use
their Purchasing Card or account number. Any violation of this could
constitute misuse of the Purchasing Card and subject to loss of card
privileges and/or other consequences.
If the card is lost or stolen the cardholder shall immediately notify
JPMorgan, who is available 24 hours a day, 7 days a week, at 1-800-316-6056.
The Program Administrator and Department Coordinator are also to be
notified immediately. A new card will be promptly issued to the cardholder
after the reported loss or theft. A card that is subsequently found
by the cardholder after being reported lost must be destroyed.
Departmental
Coordinator and Supervisor Responsibilities
Departmental Coordinator Responsibilities
Department Coordinators must review and post online transactions using
the receipts and/or supporting documentation submitted to them by their
department cardholders within ten (10) business days of receiving the
open batch e-mail notification.
The Department Coordinator will work with the cardholder and their supervisor
to obtain any delinquent receipts and/or supporting documentation. As
necessary, the Program Administrator will send a reminder to cardholders
and supervisors that paperwork needs to be submitted to their Department
Coordinator.
The Department Coordinator will submit their cardholder’s monthly
statements with the supporting documentation attached to the cardholder’s
supervisor for signature/approval. After the supervisor has approved
and returned the monthly statements to the Department Coordinator they
will retain these statements for six (6) years for auditing purposes.
Online batches that are not updated within 10 business days of the open
batch e-mail notification will be reported to the Department Coordinator’s
supervisor.
It is the responsibility of the Department Coordinator to notify their
back up Coordinator and Program Administrator when they will need their
assistance in updating online batches.
Supervisor Responsibilities
Department supervisors are responsible for reviewing all monthly cardholder
statements, and signing them indicating the statements have been reviewed
and the cardholder was authorized to make each purchase listed on a
monthly basis. After approval, the supervisor will return all statements
to the Department Coordinator for retention and auditing purposes. It
is recommended that department supervisors perform a periodic review
of the activity on all purchasing cards issued to faculty/staff within
their department and determine if all cardholders’ have a continued
business need to carry a purchasing card. No cardholder may approve
their own purchases or monthly statements.
Cardholder Separation
Prior to separation from the College, the cardholder shall surrender
his/her Purchasing Card and all outstanding receipts or supporting documentation
to their Department Coordinator. The Department Coordinator will forward
the card to the Program Administrator for cancellation with the bank.
Definitions
Terms
Approval: Every credit card transaction must be reviewed
and approved by an identified individual other than the cardholder and
the departmental coordinator.
Cardholder: Employee who has been issued a Purchasing
Card and who is authorized to make business related purchases in accordance
with this policy.
Department Card: Purchasing card issued in the departments
name. This type of card remains in the designated department and is
kept in a secured location. It is released to an authorized faculty/staff
member for purposes of College related purchases, and then returned
to the department for safekeeping.
Department Coordinator: Designated departmental employee(s)
responsible for reviewing online transactions and posting transactions
to the proper accounts.
Individual Card: Purchasing card issued to authorized
faculty and/or staff who have been approved to make business related
purchases on behalf of the College. These cards are embossed with the
cardholder’s name on them and may only be used by the cardholder.
Program Administrator: The person responsible for all
program details, including all cardholder inquiries. This person is
also the Manager of Accounts Payable.
Requisitioner: An employee who has a need for materials
or services that can only be fulfilled by a supplier. Under the Ithaca
College Purchasing Card Program a requisitioner may be a cardholder.
Single Purchase
Limit: A dollar limitation on purchasing authority delegated
to a cardholder. Currently this limit is set at $2,000.
Statement of Account: The monthly listing of all transactions by the
cardholder, issued by the Financial Institution directly to the cardholder.
Supplier: A company from which a cardholder is purchasing
materials and/or equipment or services under the provisions of this
policy.
