ADMINISTRATIVE RULE NO: 5035-11

RELATED TO POLICY NO: 5035

TITLE: PURCHASING CARD (P-CARD) PROCEDURE

PURPOSE

To provide guidelines and procedures for appropriate use of LBCC Purchasing Cards (P-Card)

STATEMENT

A Purchasing Card (P-Card) is a convenient method of payment for purchases below the purchase order threshold. It is designed to expedite supplier payment. Cards are for official college business, and may NOT be used for personal purchases. Cards are issued only to the individual named on the card, and shall NOT be used by a third party. Cards may not be used for cash advances or ATM use. The P-Card process is not a replacement for price quotes or the bidding processes.

P-Card holders are required to abide by all the terms and conditions as set forth herein and to help minimize risk inherent in the use of credit cards.

By signing the agreement and P-Card, the employee agrees to accept and adhere to these terms and conditions. Please read them carefully.

PURCHASING CARDHOLDER GUIDELINES AND RESPONSIBILITIES

Improper use or misuse of a college P-Card will result in suspension or revocation of the card. Improper use or misuse may result in restitution to the college and disciplinary action against the cardholder, up to and including termination of employment and criminal action.

  1. Authorized Users

    Only college employees may be designated as authorized P-Card signers. If the designated P-card bears an individual's name, it may not be loaned for use by anyone else.

  2. Authorized Usage/Restricted Commodities
    Certain categories of products and services are NOT allowed and cannot be purchased with a P-Card without prior approval of the director of accounting and budget. Commonplace examples of restrictions include:
    1. cash advances;
    2. controlled substances, including alcohol, narcotics, drugs, and ethyl alcohol;
    3. favors (including but not limited to flowers, fruit, cards) for personal presentation;
    4. guns, weapons, or explosives;
    5. insurance of any kind;
    6. leases of equipment or floor space;
    7. personal charges, including personal travel-related expenses;
    8. telephone and telephone services;
    9. temporary services and/or temporary employees;
    10. vehicles;
    11. vending equipment and supplies; and
    12. gasoline for personal vehicles.
  3. Restricted Uses

    Certain categories of products and services may be purchased with a P-Card only with prior approval of the supervisor, including:

    1. biological compounds, injections, bacteria, cultures, or chemicals;
    2. controlled substances, including alcohol, narcotics, drugs, and ethyl alcohol;
    3. hazardous materials; and
    4. radioactive materials.
  4. P-Card Use
    1. M&S Expense: P-Cards may be used for materials and services below the threshold that requires a regular purchase order. Each cardholder shall follow all administrative rules regarding purchases and purchasing practices. NOTE: No single charge may exceed $2,500 (unless approved by the supervisor and authorized by the P-Card program administrator), and a monthly spending limit of

      $5,000 (unless approved by the supervisor and authorized by the P-Card program administrator) will be imposed. Purchases may not be split to bypass these restrictions. All purchases are to follow LBCC's purchasing guidelines, and cards are not to be used to modify or pay any regular purchase order or blanket purchase order.

    2. Travel Expense: P-Cards may be used for travel-related business costs with documentation of the event and/or purpose of the travel. Cardholders are prohibited from charging expenses on the P-Card and at the same time collecting per diem expense payments for the same charges.
  5. P-Card Limit

    There may be a P-Card limit designated by card providers that is lower than the LBCC limit, depending on the type of card. The director of accounting and budget may assign and/or modify card limits.

  6. P-Card Form

    Each prospective cardholder is required to complete a Purchasing Card Request Form found on the LBCC website under the Business Office Forms.

  7. Payment Process

    The process will include the following:

    1. Cardholder completes the Purchasing Card Request Form, receives authorization from their supervisor, and sends the form to the director of accounting and budget. Once approved, the form will be forwarded to Purchasing for processing.
    2. Purchasing requests that a P-Card be generated for the cardholder. The card is delivered to the Business Office and then distributed to the cardholder. The P- Card administrator will train the cardholder on appropriate use of the card, and the cardholder will sign to indicate they have been trained. The cardholder shall sign the back of the card and may start making purchases as necessary.
    3. At the end of the monthly processing cycle, the cardholder or proxy (person who can process the cardholder statement in the absence of the cardholder) will log onto the Works website, assign the appropriate FOAPAL, sign off on the transactions, print the report, attach all required documentation and receipts (small receipts shall be taped to a larger sheet for handling), and deliver to the approver for review. If the original receipt is lost, circle the charge on the statement; attach a statement identifying the charge, who made the purchase, what was purchased, and the purpose of the charge.
    4. The approver logs on to the Works website, reviews the transactions to ensure appropriate use of college resources, signs off on the transactions, and forwards the statement along with backup documentation to Accounts Payable for further processing.
    5. Accounts Payable will verify that appropriate documentation is completed and enter the payment information from Works into Banner.
    6. The cardholder is responsible to pursue and correct any discrepancies between the monthly billing total and the receipts total. If the dispute is not resolved, contact the P-Card Coordinator to obtain the necessary dispute information. Disputes must be filed in writing within 60 days of the original transaction. Cardholder must reimburse any difference between allowable costs and charges (e.g., excessive meal costs). All returns processed on a credit card sale must be processed as credits against the same account.
    7. If the cardholder and approver determine at any time during the month that the per month or transaction limits are not sufficient for the cardholder, the cardholder approver will email the P-Card administrator and the director of accounting and budget requesting limit increases. These can be on-going or one- time requests.
  8. P-Card Use While Traveling on College Business

    Cardholders are prohibited from using the P-Card for meals and incidental expenses while traveling on college business if they are drawing per diem payments as established in AR 5115-01.

  9. Fiscal Year

    All credit card expenditures incurred within a fiscal year will be paid from said fiscal year budget.

  10. Additional Fees

    Cardholders will be solely responsible for immediately reporting any lost or stolen P- Cards. All expenses or charges incurred because of lost or stolen cards will be charged to the responsible unit.

    1. If a card is lost or stolen, immediately call and report to:
      1. Bank of America at (888) 449-2273.
      2. The Purchasing Agent who is the LBCC P-Card administrator at (541) 917- 4332.
      3. If stolen from an LBCC facility, also call Campus Security at (541) 917-4440.
    2. Charges associated with obtaining the credit card(s) and service fees, if any, shall be charged to the responsible department/division making application for said card.

DATE OF ADOPTION: 08/10/93

DATE(S) OF REVISION(S): 08/23/94; 08/08/95; 07/01/97; 06/14/05; 07/06/10, 2/18/16; 10/31/16

DATE OF LAST REVIEW: 10/31/16