5.14.2 College Purchasing Card Policy and Procedure

Policy

It is the policy of Alexandria Technical and Community College to follow Minnesota State Colleges and Universities Procedure 7.3.3 Credit Cards, http://www.mnscu.edu/board/procedure/703p3.html, which provides authority to establish a credit card program for business use only.

Procedure

Obtaining a Purchasing Card

A completed Employee Purchasing Card Agreement form is required for each cardholder. No employee will be able to apply for a credit card unless his/her supervisor gives approval. All cardholders must sign and accept the terms and conditions of the Employee Purchasing Card Agreement. All cardholders will be required to attend a training session and will receive the Purchasing Card Manual.

Individual purchasing cards will be customized to each cardholder's need and will include:

  • A dollar limitation of purchasing authority per transaction and for the total of all charges made during each monthly billing cycle,
  • A dollar limitation of purchasing authority assigned to the cardholder per transaction made with the individual purchasing card and
  • Merchant agreement blocking.

The cardholder will be responsible for signing the credit card when it is received, the security of card and all transactions made against it.

Responsibility, Accountability and Authorized Card Use

Purchasing cards may be used to purchase eligible merchandise or services required in association with the duties or responsibilities of the cardholder. Each individual cardholder has the following responsibilities:

  • Safeguard the purchasing card and card account number at all times; lost or stolen purchasing cards must be reported immediately to the Purchasing Card Coordinator and by calling the Customer Service number listed on the card.
  • Do not allow anyone else to use the purchasing card or card account number.
  • Obtain and retain original itemized receipts for goods and services purchased. All forms of canceled checks and copies of purchasing card bills do not substitute for original receipts. All credits, including returns, must be documented with itemized receipts referencing the original purchase and purchase date.
  • Receipts or packing slips and the customer's copy of the charges must be attached to the monthly statement and the monthly statement must be signed by the card holder. A time period of five (5) days is considered a timely review and submission.
  • Late fees which occur because the cardholder did not submit a monthly statement and required documentation in a timely manner are the responsibility of the cardholder.
  • In a timely manner, submit the monthly statement and documentation to their supervisor.

Supervisor Responsibility

Supervisors of cardholders are responsible for reviewing expenses and ensuring compliance with policy and procedure. Their duties include:

  • Approving employees for participation in the purchasing card program.
  • Reviewing purchases to ensure card has not been used for unauthorized or inappropriate purchases.
  • Responding to any misuse of the card by the cardholder.
  • Ensuring closure of purchasing card at the time of employee's separation or removal of purchasing card authority.

Unauthorized and/or Inappropriate Use

Purchasing cards are not to be used to purchase items for personal use of for non-college purposes, even if the cardholder intends to reimburse the college. A cardholder who makes an unauthorized purchase with the card or uses the card in an inappropriate manner may be subject to disciplinary action, up to and including termination, as well as revocation of the purchasing card, criminal prosecution and the restitution of the unauthorized use.

Prohibited Use

Purchasing cards cannot be used for purchases in the following categories:

  • Food and beverages for an individual employee;
  • Alcoholic beverages;
  • Cash or cash advances;
  • Items for personal use;
  • Employee relocation expenses;
  • Expenses required to be reimbursed under MnSCU Procedure 5.19.3, Travel Management (including gasoline for personal vehicles);
  • Sensitive items as defined in MnSCU Procedure 7.3.6, Capital Assets (including weapons of any kind); or
  • Items for non-college purposes.

Use Allowed Only when Specifically Authorized

Specifically authorized cards may allow for purchases listed in this part that comply with applicable procedures, and any applicable grant agreement. In all cases, prior approval for the expenditure must be received using the Request for Special Expenses Form.

  • Travel-related expenses (by cardholder). An authorized card may be used in all allowable expenses of the cardholder, except food and beverages. Examples of allowable expenses include: airfare, room and related taxes, vehicle rental, gasoline for a rented vehicle and parking while in travel status.
  • Travel-related expenses (for persons other than the cardholder). Authorized cards may allow for cardholder to make arrangements for transportation or lodging for another individual or groups of individuals.
  • Food and nonalcoholic beverages for student activities that will be paid for with Student Activity funds in compliance with procedures.
  • Food and nonalcoholic beverages that will be paid for with grant funds, if allowed by a grant agreement.
  • Conference and seminar registration.
  • Use of purchasing cards for entertainment and recreation is prohibited, except that authorized cards may allow for entertainment and recreations purchases for:
    • Student activities that will be paid for with Student Activity funds;
    • Activities that will be paid for with grand funds as authorized by the grant agreement, or
    • Academic activities that will be paid for with course fees.
Approved by: ATCC Leadership Council
Effective Date: 12/20/10
Last Date Revised: 12/20/10