Corporate Purchasing Card (P-Card) Procedure

The Purchasing Card (P-Card) is available as an optional method for purchasing goods and services. University policy is that the P-card may be used for the following transactions. All other types of transaction should be enacted in the HokieMart:

• Over the counter sales with local vendors
  
• Purchases from the US Post Office
  
• Air fare
• Membership and association dues
• Conference and course fees, seminars/training and other registration fees
• Advertising for employment opportunities and other announcements
• With vendors that do not accept HokieMart see http://www.purch.vt.edu/HokieMart/xvendors.html
• Any other Category on the Direct Pay List that that is marked (eVA exempt) see http://www.policies.vt.edu/3220.pdf

In authorized situations, cardholders may directly contact vendors to purchase goods and services with a limit up to $2,000 per transaction [including transportation costs and sales or use tax (if any)]. Please click here for more information about Departmental Purchasing of Goods and Services Overview Information . On-Line P-Card account access is available on the Works site:
First time log-on instrcutions
Guide for cardholders on how to access Bank of America's Works system

Cautions: The P-Card Program is not to be confused with the Travel Card Program which is used by employees when on business travel. The only exception to this is air fare and mass transit purchases may be charged to the P-Card (click here for more information). The P-Card is for university purposes only, personal use is not allowed under any circumstances. The pre-set transaction ceiling shall not be circumvented by "splitting" orders (i.e., placing more than one order in an attempt to purchase goods or services valued over the pre-set transaction limit). For security and fund management reasons, Departments must request transactions and monthly limits when applying for a card. An analysis of monthly departmental expenditures must be performed to determine the proper card limit. The average card expenditure is between $100 and $200. A cardholder may not, under any circumstances, authorize any charge in excess of the transaction limit set by the Program Administrator. If a cardholder authorizes a charge in excess of the per transaction limit established for that card, whether by splitting the invoice, encouraging the vendor to circumvent the Credit Card Company denial, or any other means, the card may be revoked for a minimum of three months. Repeat offenses may result in permanent revocation.

Department personnel involved with procuring goods and services as well as those approving payments should attend a training session. Please click here for more information about training.

The Purchasing Department is responsible for processing applications, processing the On-line test, obtaining late Statements upon request, handling disputes, adjusting spending limits, and adjusting card defaults. Questions should be directed to Debra Reed 231-8548.

The Controllers office is responsible for processing the reconciled statements as well as answering questions regarding distributing charges, necessary documentation, supporting those charges, and non-sufficient funds. Questions should be directed to Dorothy Carter 231-8618.

The Controllers office is also responsible for the Travel Card program, see the Travel Card Procedure. Questions should be directed to Wilda Lay 231-8613.

• The Department Head will decide which faculty and staff members should have a card. The Department Head is responsible for proper use of all of the P-Cards issued to his/her department. The cardholders should be individuals who perform departmental ordering on a frequent basis. The P-Card is not intended for employees that are not knowledgeable of the procurement procedures or senior-level individuals who may approve expenditures, but do not actually involve themselves in the transactions.
  Authorized use of the P-Card is limited to the person in whose name the card is issued. (See Security)
• To apply, complete the P-Card Employee Agreement form. If you have any questions contact Debra Reed at ext. 231-8548.
• Complete the P-Card test after completely reviewing this procedure.
  NOTE: To assure that the future cardholder understands how the P-Card is to be used, this test shall be completed with a minimum score of 87% before the P-Card is issued.
• The Department Head or Delegated Representative completes the spending analysis in section A. This person should review information such as Financial Reports and or departmental procurement files to evaluate the cardholder's current purchasing capacity. Once this is analyzed, the P-Card transaction limit (not to exceed $2,000) and monthly limit (not to exceed $100,000) should be set according to this analysis.
• The future cardholder completes the basic application information in section B. The Controllers Office uses the default fund code when the cardholder fails to reconcile the statement therefore also failing to submit the Payment Certification form by the deadline (the 10th of the following month). Failing to reconcile the statement and submit the Payment Certification form by the deadline is not accepted practice and could lead to card cancellation.
  NOTE: P-Cards shall not be shared - only the person whose name is on the card is allowed to use the card.

  NOTE: Purchases related to accommodations, car rental, oil/gas, and restaurants are automatically blocked n the P-Card. The car rental block may be lifted on a case by case basis by contacting Debra Reed at 231-8548. Department Heads may indicated on the application (Section B) if they want the oil/gas block be lifted permanently on the P-Card to purchase gas for state vehicles or for operating equipment. If the future cardholder will be using the P-Card for delegated purchasing needs as well as gas purchases, the box beside "Raise the block on this card" should be checked. Department Heads may also have the gas/oil block to be raised on an existing P-Card by contacting Debra Reed at 231-8548. The P-Card cannot be used to purchase gas for personal vehicles.

• The Department Head completes section C to approve the application. The Department Head decides which faculty and staff members should have a card and approves all applications. The Department Head is responsible for proper use of all of the P-Cards issued to his/her department.
• Forward the completed form to:

  Purchasing Department (0333)
  Attn: Debra Reed
  270 Southgate Center
  Blacksburg, VA 24061

• The Purchasing Department will forward the necessary paperwork to order the card.

• The P-Card is not to be used where purchasing is restricted by either State or University policy. Prior to using the card, know and understand the Delegation Restrictions .
  NOTE: P-Cards shall not be shared - only the person whose name is on the card is allowed to use the card. If a cardholder knowingly allows another person to use the card, the named cardholder’s privileges may be revoked for a minimum of three months. This does not preclude a cardholder from placing an order with a vendor by telephone or electronically and then sending a representative to claim the items ordered.
• Identify a vendor/supplier that sells the required good(s) or service(s).
• If ordering over the Internet, be sure the ordering site is encrypted or protected by a SSL (Secure Sockets Layer) version 2 or greater. To ensure the vendor has a SSL, the address window must start with https://. Retain the vendor's web address in the manual or electronic log.
• Never fax the P-Card number to a vendor. Orders may be submitted by fax -- leaving off the P-Card number -- then call the vendor to give the P-Card number.
• For purchases of goods picked up by the cardholder, use the P-Card at the vendor/supplier's business just like any other credit card.
• For those vendor/suppliers that make deliveries or will mail items, contact the vendor/supplier by phone to place the order. The vendor/supplier will need your P-Card number and the expiration date.
  NOTE: To assist Departments with a tracking scheme, some vendors have the ability to encode information at a cardholders request. When placing an order with such a vendor, ask the vendor to encode up to 9 alpha/numeric characters that you have pre-selected for that particular order. This alpha/numeric code will then appear on the itemized receiving documentation received from the vendor and on the statement.

  EXAMPLE: If you are placing the first order of the month for professor John Doe on August 15, a possible tracking code for this transaction could be JD08151. A later order on the same day could be coded as JD08152.

• After each transaction, manually or electronically log or file the purchase order information.
  NOTE: Each transaction must be tracked by using a manual or electronic log or file. The P-Card Log is an example of a log that may be used, as well as, the P-Card Transaction Tracking Log/Sponsored Programs Approval Sheet which is available if more detailed logging information is needed. As a minimum, the log should show the cardholders name and department, item(s) purchased, price, vendor, and the date of the purchase. If the cardholder has minimal purchases (less than 10 purchases on average per month), it is permissible to keep a receipt file in lieu of a manual or electronic file.  It is recommended that a manual or electronic log be maintained if the card is used extensively.
• The vendor/supplier must submit itemized receiving documentation (i.e., packing documents, sales ticket or receipt) that details the goods or services purchased including the price. Keep this documentation in the file for reconciliation purposes.

Reconciling Charges:

NOTE: The monthly billing cut off is the 15th of the month. Cardholders will receive a hard copy of the statement. The original Payment Certification Form and the original P-Card statement must be submitted to the Controller's Office by the 10th of the following month.
If an incorrect charge or credit appears on the P-Card statement, it should be treated like any other charge or credit for reconciliation purposes as the statement must be paid each month in its entirely. See Returns, Credits, Disputed Items instruction on how to handle incorrect charges.
• Once the P-Card statement is received, compare the log and/or the itemized receiving file documentation provided by the vendor to the P-Card statement to assure the charges are accurately listed on the P-Card statement.
• If a purchase does not appear on the P-Card statement, make a note in the log or on the file documentation. Maintain this documentation so it can be used when reconciling a subsequent statement.
• If the payment is being placed on the default fund, select the "All charges and credits are correct and should be posted to the default fund" box on the P-Card Payment Certification Form.
• If the payment is being distributed to multiple funds, write the corresponding fund and account codes on the P-Card statement for each transaction.
  Note: You may use up to four different funds and/or account codes for a single charge.

  Note: Clic here to see a listing of Non-Personnel Services Expenditure Account Codes. Account codes must be provided for all P-Card transactions. They cannot be left in account code 13090.

Reconciling Credits:

• Compare the credit documentation provided by the vendor to the P-Card statement to assure credits are accurately listed on the P-Card statement. Retain all credit documentation in the file.
• If a credit does not appear on the P-Card statement, make a note in the log or on the file documentation. Keep this documentation so it can be used when reconciling a subsequent statement.
• If the credit is being placed on the default fund, select the "All charges and credits are correct and should be posted to the default fund" box on the P-Card Payment Certification Form.
• If the credit is being distributed to multiple funds, write the corresponding fund and account on the P-Card statement for each credit.
  NOTE: You may use up to four different funds and/or account codes for a single credit.

  Note:Note: Click here to see a listing of Non-Personnel Services Expenditure Account Codes. Account codes must be provided for all P-Card transactions. They cannot be left in account code 13090.

Payment Certification Form
• Complete following sections of the P-Card Payment Certification Form:
  - Department Number
  - Department Name
  - Card Number
  - Cardholder's Name
  - Cardholder's 9 digit employee ID#
  - Statement Closing Date
  - Balance Outstanding
  - Method of fund distribution - (Select either "All charges are correct and should be posted per the attached sheets" or "All charges are correct and should be posted to the default fund")
• Sign and date the Cardholder Signature section.
  NOTE: This block should be signed by the cardholder. If, on rare occasions, the cardholder is unavailable for several days, have another person that is familiar with the purchases sign the form. Attach a note of explanation when someone else signs for the cardholder.
• Obtain payment approval signature from the Department Head or employee with signature authority. Two signatures are required on this form, therefore the cardholder (or person signing for the cardholder) cannot sign again as the approver.
  NOTE: The person signing to approve the payments must review their responsibilities on page two of the P-Card Payment Certification Form and is signing to validate that all charges are correct or that action is being taken to correct incorrect charges.
• Make copies of the completed P-Card Payment Certification Form, the P-Card statement, and if necessary any documentaiton from airline ticket purchases for the departmental files.
• Send the original Payment Certification Form, original P-Card statement, and all original documentation for airline ticket purchases if required (see procedure below for complete requirements) to the following address address by the 10th of the following month:

  Controller's Office (0312)
  201 Southgate Center
  Blacksburg, VA 24061

  NOTE: Documentation for airline ticket purchases must be attached to the P-Card Payment Certification form if the Department Head or the designee approving the monthly certification form has travel expenses in the monthly statement, the cardholder must attach a copy of the Department Head’s travel approval form (approved by the Dean or Vice President) to meet the university’s requirement that anyone receiving anything of value using public funds must have that approved by the “next higher level of supervision.” Additionally, if the Department Head’s designee approves the certification form AND has travel expenses in the monthly statement, the cardholder must attach a copy of the travel approval form (signed by the Department Head) to the certification.

  NOTE: If this date is not met, the Controllers Office will post the charges on the P-Card Statment to the default fund (as indicated on the P-Card Employee Agreement form). Subsequently, any fund and/or account code transfers will be the responsibility of the departments. Any finance/late charge assessed due to the Controllers Office inability to secure the proper documentation from the departments will also be charged to the department. Failure to reconcile may result in card cancellation. Additionally, if an invalid fund and or account is submitted, the Controllers Office will post charges to the default fund.

• File a copy of the P-Card statement, a copy the Payment Certification Form, any airline ticket documentation, any Sponsored Program approval forms, the vendor's original itemized receiving and credit documentation that pertains to that statement, and any other documentation generated to support the business purpose for the expenditure in the departmental files. SEE THE SECTION ON RECORD RETENTION BELOW - DO NOT SEND THIS DOCUMENTATION TO THE CONTROLLERS OFFICE.

• Airline travel expenses must be in accordance with the university Air Transportation procedure Procedure 20335e: Air Transportation.

  Note: The P-Card may be used to purchase airline and rail tickets. Cardholders may purchase tickets in a value up to their authorized spending limit per transaction. If a ticket needs to be purchased in a value above the transaction limit, contact the P-Card Administrator and request a temporary raising of the transaction limit to accommodate the transaction.

  There are situations where two or more employees travel on the same itinerary. In that circumstance, each ticket is regarded as an individual transaction, not the total amount of all the tickets.

  Example 1: You are purchasing three tickets, each valued at $1,000. These may be purchased and will be regarded as three separate $1000 transactions (not a $3,000 split order).

  Example 2: You are purchasing three $2,100 tickets. If these are processed in the following manner, $2,000, $2,000, $2,000 and $300, this would be regarded as a violation of authorized business practices because the $2,100 transaction was split and exceeded the $2,000 delegated spending ceiling.

• Traveler or the departmental representative contacts the travel agency, airline, or the Internet to make travel arrangements.
• When the final flights are agreed upon, the cardholder provides the card number to purchase the airline ticket. If the individual making the arrangements is not the cardholder, the travel agency or other vendor places a “hold” on the flight itinerary when the final flights are agreed upon. Please note that a “hold” on the reservation does not guarantee the price--only issuing the actual ticket guarantees the price. The individual making the arrangements notifies the department P-Cardholder that they have reserved a flight. The cardholder calls the travel agency and provides the P-Card number. Tickets must be purchased within 24 hours of booking.
• If a charge exceeds the cardholder’s P-Card limit, the cardholder must e-mail the card administrator (currently Debra Reed, dbales@vt.edu) in the Purchasing Department to ask that the limit be raised.
• The department must secure a paper copy, facsimile, or e-mail notice of the itinerary from the travel agency, the airline, or the Internet to file in their P-Card records.
• At the end of the P-Card billing period, the cardholder receives the P-Card Statement and codes each trip to the appropriate Banner fund and account using normal P-Card reconciliation processing.
• The Department Head or designee reviews the P-Card Payment Certification Form and approves it. It is this signature that certifies to the Controller’s Office that all travel on the attached P-Card statement is for university business and that all personal and Virginia Tech Foundation expenses have been reimbursed to the departmental funds. No other travel approval forms have to be attached to the monthly certification form except as follows.
• If the Department Head’s designee approves the certification form AND has travel expenses in the monthly statement, the cardholder must attach a copy of the travel approval form (signed by the Department Head) to the certification.

  NOTE: Before making air fare purchases with the P-Card for someone other than the cardholder, please make certain that the traveler does not have to present the P-Card at the time the boarding pass is issued. These policies change frequently and are different depending on what airline carrier is used.

• Departments are responsible for retaining the file that is compiled each month after the statement is reconciled (this file must contain at a minimum a copy of the P-Card statement, a copy the P-Card Payment Certification Form, copies of any airline ticket documentation submitted to the Controller's Office, any Sponsored Program approval forms, the vendor's original itemized receiving and credit documentation that pertains to that statement, and any other documentation generated to support the business purpose for the expenditure). THE RETENTION PERIOD FOR THIS DOCUMENTATION IS TYPICALLY FIVE (5) YEARS AFTER THE CLOSE OF THE FISCAL YEAR OF CREATION.
  NOTE: If your are using funds such as sponsored program funds, the retention time may be longer. See the Records Management Records Retention Schedule page for the information on determining a retention schedule for such documents.

  NOTE: Each charge must have this information so the cardholder will have adequate documentation of the expense for future review by the auditors, Purchasing, Legal Counsel, or the News Media should the request be made.

• Retain these records in the Department or with Records Management. These are the original records of agency therefore; they need to be retained in a neat and accessible manner so they will be readily available in the event of an audit.

• If an item needs to be returned for any reason, discuss the method of return with the vendor/supplier before returning the item for a credit.
  NOTE: Accepting a store credit for returned items or mischarges is not an authorized practice. A charge back/credit issued to the P-Card card originally used is the only authorized practice for processing credits and or returns.
• Manually or electronically log in the credit amount due.
• The vendor/supplier must submit documentation of the return (i.e., credit receipt). Keep this documentation with the tracking log for reconciliation purposes.
• In most cases, disputes can be resolved directly between the cardholder and the vendor/supplier. If the cardholder and the vendor/supplier cannot resolve the issue, a dispute can be opened by contacting the Program Administrator, Debra Reed at 231-8548. If needed, at any point in the process, the Program Administrator can assist with the investigation and assist in the resolution. If necessary, the P-Card Company will issue a temporary credit pending final resolution.

NOTE: Authorized use of the P-Card is limited to the person whose name is on the card. The P-Card should not to be loaned to another person. This does not preclude a cardholder from placing an order with a vendor by telephone or electronically and then sending a representative to claim the items ordered. In the event of an extended absence by the cardholder, a card may be issued to another person for the duration of the absence. Also, the Department should consider canceling the card if a person is going to be on extended leave.

• The purchasing card should be kept in an accessible but secure location. The account number on the purchasing card should not be posted or left in a conspicuous place. A vendor may be allowed to keep the card number on file under the following, limited, conditions:
  • The cardholder must make initial contact with the vendor to provide the card number.
  • The vendor must keep the card number in a secure, preferably electronic, file.
  • The vendor must assign a separate, store account number for use by representatives of the cardholder so that the card number is not shared.
  • The vendor must contact the cardholder for final authorization to process the charge.
• If a P-Card is lost or stolen, the cardholder will immediately notify the Bank of America, their Department Head, and the Purchasing Department.
  NOTE: The Department is financially responsible for lost or stolen cards until it has been reported.

• The Department Head is responsible for documenting the review of the cardholders spending activity at least annually.
• If it is determined that the cardholders spending activity has changed, the Department Head or Delegated Representative can contact Debra Reed 231-8548 with the changes or they can complete the P-Card Spending Limit Adjustment Form.
• If the Spending Limit Adjustment Form was used, forward a copy of the completed form to:

  Purchasing Department (0333)
  Attn: Debra Reed
  270 Southgate Center
  Blacksburg, VA 24061

• File documentation of the review centrally in Departmental files or in the cardholder's file.

Anyone involved with purchasing or payment transactions shall know and understand the Delegation Restrictions.

Anyone involved with purchasing or payment transactions shall know and understand the Inappropriate Use .