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Purchasing Card Expectations

September 2014

To help ensure purchases made with a purchasing card are in compliance with UW-Madison, State of Wisconsin, and Federal policies/laws we have put together a list of items that should not be purchased with a p-card, or require special handling. This is not an all-inclusive list but does address common concerns regarding purchasing trends. Noncompliance with the policy and procedures may result in fines or other negative consequences for UW-Madison as well as your department.

The following link takes you to the Cardholder Guide:

The following link takes you to the Purchasing Policy and Procedure #4 which provides important information regarding special approval requirements:

The Purchasing Card Noncompliance Policy and Procedure is attached to this document.

Before placing orders direct with vendors you should first see if they are on the Shop@UW website. There are a number of vendors already established here with special contract pricing and the ordering/billing process will be expedited. The following link takes you to the Shop@UW website:

When preparing your bi-weekly p-card statement there are some additional entries that should also be made on your statement to help expedite processing, ensure proper account coding and assist with potential audits.

If you have questions regarding a purchase please contact Jan Torkildson before making the purchase.

Preparing Your P-card Statement

P-card statements are generated bi-weekly. You are required to print a copy of the statement and attach receipts for all transactions. In addition, you need to indicate what each charge is for: i.e. Lab Supplies; Office Supplies; Lab Equipment; Human Subject - (indicate the purpose)

Some purchases needing a business purpose indicated (not all inclusive)

Coffee, water and other non-essential break room items are not allowed to be purchased with University of Wisconsin funds. If you are purchasing these items you must indicate the business purpose. For example, water for reception area.

Purchases to be applied to restricted funds (133 and 144), from department stores such as Amazon, Target, Walmart, Costco, Home Depot require a business purpose and how it will be used in conjunction with the terms and conditions of the receiving award.

Your signed p-card statement, receipts and other required supporting documentation should be turned in to the business office by end of day Wednesday during the week the statement is generated.

Some of the items listed below are allowable, some are not, and some are allowable under certain circumstances. Click on blue links for additional details.

| |Airfare |A Purchasing Card approved for travel-related expenses can be used to purchase domestic, international and group |

|[pic] | |travel through Fox World Travel, the contracted travel agency. A card approved for travel can also be used to |

| | |purchase individual domestic or non-complex international airfare through Concur, the contracted self-booking tool. |

| | |Access Concur via the UW TravelWise Portal at: |

| | | |

| | |NOTE: If you are purchasing airfare and adding personal travel time to a trip you must provide a cost comparison |

| | |showing what the cost of the airline ticket would have been if you were traveling for just work. |

| | |Alcohol is only allowable when purchased for resale or when hosting a conference dinner. The complete guidelines for |

|[pic] |Alcohol |alcohol purchases can be found in the memo, “Agency Account Usage and Payments for Alcoholic Beverages” at |

| | |. The Alcohol Policy for UW-Madison events can be found at |

| | |. |

|[pic] | |Appliances (including refrigerators, microwaves, coffee makers, toasters, egg poachers, etc.) for personal use by UW |

| |Appliances |faculty and staff members are not allowable on the purchasing card. All break room appliances must be purchased with |

| | |personal funds. Appliances purchased for reception areas open to the general public are allowable on the card. |

| | |Awards are something of value conveyed as a result of competition, merit, or in recognition of service to the |

| |Awards |institution on the part of the recipient. Examples include awards to recognize student achievements, service awards |

|[pic] | |to recognize members of the community, and non-cash awards to recognize employees for distinguished service upon |

| | |retirement or career milestones. Awards to employees cannot exceed $100.00. The use of gift funds is preferred for |

| | |all award purchases. GPR funds may be used only for awards such as certificates and plaques that have no intrinsic |

| | |value or a minimal value if the item bears the University logo. No cash awards are allowed. Awards meeting the above |

| | |definition are allowable on the purchasing card. |

|[pic] | |Capital Equipment and capital equipment components must be purchased on a requisition so the information can be |

| |Capital Equipment Purchases |captured and sent to Property Control. Failure to follow the proper procedures compromises the integrity of the |

| | |Capital Equipment tracking system. If the cardholder has delegated purchasing authority, the purchase is allowed, |

| | |however, the cardholder must follow the reporting procedure at: |

| | | |

| | |and complete the Purchasing Card Capital Equipment Documentation Form at |

| | |. |

|[pic] | |The decision to have food at a UW event, either on or off campus, presents a number of concerns including the safe |

| | |and proper handling of the food, adequate insurance coverage and business procedures that meet the purchasing and |

| |Catering |accounting processing requirements. The University has established written policies that must be followed when |

| | |catering food. The guidelines can be found at the following website address, |

| | |. |

| | |If the outlined requirements are met, the catering may be paid with a purchasing card. All of the required |

| | |documentation, including a copy of the vendor’s current insurance certificate that has been approved by Risk |

| | |Management, must be attached to the cardholder statement. |

| [pic] |Cell Phones |Cellular service and equipment purchases are coordinated by DoIT in accordance with the State of Wisconsin cellular |

| | |contracts and therefore are not allowable on the purchasing card. |

| | | |

| | |If you are paying for service on your personal contract for business purposes you must pay with personal funds and |

| | |request reimbursement through e-reimbursement. Receipts reflecting what the charge is for are required and the |

| | |business purpose should be indicated in the detail of the expense report. |

| | |The following link takes you to the P-card Purchasing Policy and Procedure 3.19: |

| | | |

| |Computer Equipment, Software,|May require additional approvals. |

| |and Click Through Agreements | |

| | |Restricted/sponsored funds (133, 144) require Special Approval prior to the purchase. An Exception to Cost Principle |

|[pic] | |Approval form must be completed prior to the purchase. The following link takes you to the forms page where you can |

| | |locate the form: . A copy of the approved budget reflecting the cost allocation must |

| | |be attached to the form. |

| | |Forward the above forms to the Business Office. |

| | |The following link takes you to the Policy and Procedure: |

| | | |

| | |Software purchases generally require your agreement via a Click Through Agreement and you must seek prior approval. |

| | |Before making a software purchase you MUST contact Purchasing at 262-6557. |

| | |The following link takes you to the Policy and Procedure (see 3.5): |

| | | |

| | |Note: software purchased through DoIT does not require purchasing contact. The following link takes you to the DoIT |

| | |website: |

|[pic] |Copiers | |

| | |The state contract for copy machines is a mandatory contract. All copying needs are to be addressed through the |

| | |contract vendor regardless of the unit price and whether or not it is a used piece of equipment. |

|[pic] |Flowers/ | |

| |Decorative Items |The purchase of decorative items (plants, paintings, flowers, etc.) from University-administered funds is allowable |

| | |only if the items are placed in a general reception area frequented by students and/or the general public. |

| | |Additionally, decorative items may be purchased for an event if the participant’s fees cover payment for the items. |

| | |The purchase of items placed in employee lounges, assigned offices or other work areas are not allowable on the card.|

| | | |

|[pic] |Food Purchases | |

| | |Individual meals are not payable on the card. Events that meet the “Headquarters’ City” requirements are payable on |

| | |the card. To correctly handle expenses associated with a conference or event, the appropriate event form is to be |

| | |completed and attached to the log/statement. All policy requirements are addressed within the form for your |

| | |convenience. For further information see Events/Food at |

|[pic] |Fuel | |

| | |External reporting requirements do not allow for the purchase of gasoline on the card; however, gasoline for a rental|

| | |vehicle is acceptable. The card cannot be used for car fleet fuel purchases. The Voyager Card is provided for that |

| | |purpose. Fuel purchases for personal vehicles used in lieu of fleet vehicles are included in the established mileage |

| | |reimbursement rate and as a result are not payable on the card. |

|[pic] |Furniture |Furniture such as chairs, tables and storage items need to be purchased from contracted vendors such as Badger State |

| | |Industries (BSI) |

| | |Badger State Industries (BSI) should be the first vendor to be considered. Orders from BSI should be placed through |

| | |Shop@UW. |

| | |The following link will take you to Shop@UW: |

| | |The following link will take you to the Policy and Procedure: |

| | | |

| | |The following link will take you to the list of contracted vendors: |

| | | |

|[pic] |Gifts |Gifts are a voluntary conveyance of something of value as a gesture of goodwill or appreciation. Gifts from program |

| | |revenue sources may be given in the following circumstances: 1) to distinguished visitors to campus; 2) to foreign |

| | |nationals when University personnel are visiting other countries and gifts are necessary, customary and reasonable in|

| | |cost; or, 3) to recognize contributions of time or funding support by members of the public. Gifts meeting the above |

| | |criteria are allowable on the card. Gifts of any kind, to an employee, are not allowable on the card. No baby, |

| | |wedding, birthday or graduation gifts are allowable. |

|[pic] | |Gift cards cannot be purchased with a p-card. |

| | | |

| | |The purchase and use of negotiable items, such as gift cards or gift certificates, require strict accountability and |

| | |are to be used for prizes and awards only. Gift cards are not to be awarded to employees or Nonresident Aliens and |

| | |cannot be used for the payment of services or other tax reportable transactions. Examples of appropriate gift |

| | |purchases include an incentive for students to complete a survey or sell the largest number of tickets to an event. |

| | |If buying gift cards for human subjects, see Policy:103-Payments to Human Subjects Procedures |

| | |() and 301-Custodian Funds |

| |Gift Cards |(). |

| | |The IRS considers gift cards and gift certificates to be cash equivalents, therefore control measures must be in |

| | |place at the Dean’s Office level to ensure proper use and departmental accountability. The Gift Card Approval Form |

| | |() must be signed by the respective Dean’s Office |

| | |prior to the gift card purchase. In signing off on the form, the Dean’s Office will review and ensure the following: |

| | |Participants are not frequent gift card recipients, minimizing the risk of non-compliance with IRS tax reporting |

| | |regulations. Multiple gift cards should not be given to the same individual during a calendar year. |

| | |The individual making the gift card purchase is accountable for the safekeeping and appropriate documentation of the |

| | |cards, including the distribution to the recipients. |

| | |Gift cards purchases are restricted to the purchasing card single transaction limit in amounts of $25.00 or less per |

| | |individual gift card. |

| | |Unused Gift Card will be accounted for. |

| | |Academic based gift cards impact a student’s financial aid, therefore cards purchased are not to be distributed for |

| | |that purpose. For further information see Accounting Services Policies and Procedures 101.A Departmental Scholarship |

| | |Authorization at . |

| | | |

| | |Purchases on Grant money must be pre-approved by Research and Sponsored Programs prior to submitting the form into |

| | |the Dean’s Office for final approval. The Gift Card Recipient Log |

| | |() is to be used to document the name and contact |

| | |information of each recipient. All card documentation must be attached to the Purchasing Card Statement of Account |

| | |Report that reflects the gift card purchase. |

| |Gratuity |Gratuity within reason for a Headquarters’ City conference or event is acceptable on the card if the majority of |

|[pic] | |attendees are not UW employees. If the event consists of mainly UW employees, the gratuity must fall within the |

| | |individual meal limits. |

| |Greeting Cards | |

|[pic] | |Greeting cards of any nature are not allowable on the card. |

| |Holiday Decorations |The purchase of holiday decorations from University-administered funds is allowable only if the decorations are |

|[pic] | |placed in open public areas, such as a student union, student dormitory, student health center or an educational |

| | |conference center such as UW Extension facilities. |

| |Hospitality Expenses |Hospitality-type purchases such as flowers, greeting cards or graduation expenses are not allowed on the Purchasing |

|[pic] | |Card. Any expense that is to be paid in full or part with Foundation Money cannot be processed on the Purchasing |

| | |Card. These types of expenses should be processed on a Personal Liability My Corporate Card and reimbursement can be |

| | |requested via the e-Reimbursement System. |

| | |Insurance is not an acceptable Purchasing Card purchase. All insurance must be processed through Risk Management. |

|[pic] |Insurance |Student Health Insurance Plans (SHIP) are not payable on the Purchasing Card. Consult the University Health Services |

| | |() or SHIP () website for further information. |

| |Meals |Individual meals are not allowable on the standard purchasing card nor are they allowable on a purchasing card that |

|[pic] | |has been approved for travel. |

| | | |

| | |The individual must personally pay for all meals and request reimbursement in the Expense Reimbursement System |

| | |(). |

| | | |

| | |If hosting a meal you must complete the appropriate Events form and attach a list of attendees and an agenda. |

| | |The following link takes you to the Accounting Service website where you can access the appropriate “Events” forms: |

| | | |

| | | |

| |Member- |The initial payment of a membership is not payable on the card. The initial membership payment must be submitted on a|

|[pic] |ships |Direct Payment and routed through the Dean’s Office to obtain Division approval. Subsequent payments, after the |

| | |approved initial payment, can be made on the card. |

| | | |

| | |The following link takes you to the P-card Purchasing Policy and Procedure: |

| | | |

| |Online Auction Purchases |The Purchasing Card may be used to purchase items from an online source such as EBay provided the risk of loss has |

| | |been minimized to the maximum extent possible and State procurement rules are met. Since there are no refunds when |

|[pic] | |purchasing from an online auction site, cardholders should do everything possible to determine the true condition of |

| | |the item being purchased. When purchasing an operating piece of equipment, it is expected that an independent person |

| | |or company be used to validate the operating condition. Cardholders are encouraged to contact the Purchasing Agent |

| | |that handles the particular commodity prior to making an online auction purchase. |

| |Parking |Parking costs incurred outside of the individual’s headquarters city are allowed on the Purchasing Card. Parking |

|[pic] | |costs incurred within the individual’s headquarters city or at the individual’s permanent work site are NOT allowed |

| | |on the Purchasing Card. |

| | |Note: Parking costs incurred at the airport within the individual’s headquarters city are allowed. |

| |Printing |Printing under $49.99 is allowable on the card. Printing over $49.99 must be ordered through the UW Madison Division |

| | |of Information Technology Printing Services. Digital Publishing & Printing Services (DP&PS) has the authority to |

|[pic] | |purchase printing from the private sector through an established contract or a competitive bid for custom printed |

| | |materials, quick copy/duplicating, photocopying and direct digital printing. |

| | | |

| | |Faculty and staff are NOT authorized to directly purchase printing over $49.99 from outside vendors. |

| | | |

| | |DoIT Printing Services will purchase all printing for UW-Madison offices, except offices with limited delegation |

| | |authority such as University Publications Office and UW Press. |

| | | |

| | |The following link takes you to the P-card Purchasing Policy and Procedure: |

| | | |

|[pic] |Prizes | |

| | |Prizes are something of value conveyed as a result of chance, generally for promotional purposes, to one or more |

| | |participants in a University sponsored event. Prizes may only be awarded in situations where benefits are expected to|

| | |accrue to the University. Examples include door prizes to encourage attendance at an event or prizes as an incentive |

| | |to encourage responses to questionnaires or surveys. The value of the prize must be reasonable and appropriate based |

| | |on the minimum amount required to achieve the objective and cannot exceed $200.00. Prizes cannot be awarded to |

| | |employees unless the basis for awarding the prize has nothing to do with the recipient’s employment. Prizes meeting |

| | |the above definition are allowable on the card if approved by the respective Dean’s Office. The anticipated benefits |

| | |of awarding the prize must be documented and attached to the Statement of Account Report. Cash prizes are not |

| | |allowable on the purchasing card. |

|[pic] |Registrations and | |

| |Subscriptions |Registrations and subscriptions are allowable on the card. |

|[pic] |Serial Purchases | |

| | |Serial Purchasing is intentionally breaking an order to an external vendor into two or more purchases/payments to |

| | |avoid the required bid process. Purchases over $5,000 must go through a Delegated Purchasing Agent or Purchasing |

| | |Services |

|[pic] |Services | |

| | |Tax reportable purchases, including services, are payable on the Purchasing Card. Payment settlement entities are |

| | |required to report on all taxable credit card transactions. Prior to commencing service work on campus, the vendor |

| | |must have a valid insurance certificate on file in the Risk Management Office. Cardholders should use the insurance |

| | |certificate tool at to check for vendor certification and |

| | |if the transaction is over $5000 contact Purchasing Services for contracting assistance. |

|[pic] |Special Approval Purchases | |

| | |To comply with University policies, state statutes, and federal regulations, UW-Madison departments must obtain prior|

| | |approval and/or fill out required forms for the products/services listed in the Policy & Procedure (PPP#4) – Special |

| | |Approvals list. Purchasing Services, delegated purchasing departments and cardholders cannot initiate a purchase for |

| | |the products/services listed until approvals are obtained, regardless of the dollar amount. |

| | | |

| | |The following link takes you to the Purchasing Card Noncompliance Policy and Procedures: |

| | |bussvc.wisc.edu/purch/ppp4.html |

|[pic] |Sponsorships and Donations |Sponsorships and donations of any kind are not allowable on the purchasing card. |

|[pic] |Stamps |Postage stamps may be purchased with the card. |

|[pic] |Tax Reportable |Tax reportable purchases are payable on the Purchasing Card. |

|[pic] |Travel |The Department of Administration has approved the use of the Purchasing Card for four travel related expenses: |

| | |contract airfare, hotels, contract car rental and transportation while in travel status. |

| | | |

| | |The business purpose for the trip should be indicated on you p-card statement. |

| | |When arranging for travel you need to use the correct funding string. You must apply travel charges to the grant that|

| | |will be open at the time of travel. In other words, you cannot purchase airline tickets, registration or lodging for |

| | |July if the funding string you want to use ends June 30. |

| | |You must book your ticket using the Fox World Travel Concur website if you wish to use a p-card. |

| | |The following link takes you to the TravelWise/Concur Website: |

| | |International Air travel when using restricted/sponsored funds (133, 144) requires compliance with the Fly America |

| | |Act. |

| | |If using a foreign carrier from a country we do not have an agreement with you must complete the Fly America Act |

| | |Waiver Checklist and provide supporting documentation. |

| | |The Fly America Act Waiver Checklist can be requested from the Financial Specialist in the Business Office Room 202. |

| | |The following link takes you to the Fly America Act Website: |

| | |

| | |uts |

| | |The following link takes you to the Purchasing Policy for International Travel: |

| | | |

| | |Once a cardholder is given permission to use the card for travel, a Travel Agreement Form must be completed and |

| | |signed by the Department and Dean’s Office representatives and sent to the Purchasing Card Manager for processing. |

| | |The cardholder and Site Manager are then required to attend a travel training session that covers the travel |

| | |restrictions and documentation requirements. |

| | | |

| | |NOTE: If you are purchasing airfare and adding personal travel time to a trip you must provide a cost comparison |

| | |showing what the cost of the airline ticket would have been if you were traveling for just work. Individual meals are|

| | |not allowable on the card. |

University of Wisconsin – Madison

Purchasing Card Noncompliance Policy and Procedures

The Purchasing Card is intended for best-judgment purchases under $5,000. All purchases must comply with the guidelines in the University of Wisconsin-Madison’s Cardholder Guide , Purchasing Service’s How to Purchase Goods and Services , and extramural funding agency restrictions.

An expanded list of transactions that cannot be processed on a Purchasing Card can be found at:

Examples of noncompliance include, but are not limited to, the following:

Personal/Non-UW Business Related - The Purchasing Card is designed to assist the buyer in obtaining UW Business-Related items conveniently and cost effectively. Personal items are not allowable on the Purchasing Card at any time. Any error in the use of the Purchasing Card for personal items must be documented and corrected immediately via a vendor refund form and a personal check made out to the University. Depending on the circumstances, the Purchasing Card may be subject to immediate cancellation.

Personal Gain/Conflict of Interest – No University employee may use his or her University position to obtain financial gain or anything of substantial value for the private benefit of himself or herself or his or her immediate family. Rebates, free merchandise or future benefits based on purchases made with University funds (including Purchasing Card purchases) must be signed over to the University.

(bussvc.wisc.edu/purch/PPP36.html)

Capital Equipment Purchases - Capital equipment and capital equipment components must be purchased on a requisition so the information can be captured and sent to Property Control. Failure to follow the proper procedures compromises the integrity of the Capital Equipment tracking system. If the cardholder has delegated purchasing authority, the purchase is allowed, however, the cardholder must follow the reporting procedure at: (bussvc.wisc.edu/acct/forms/pcccepd.html )

Serial Purchasing - Serial Purchasing is intentionally breaking an order to an external vendor into two or more purchases/payments to avoid the required bid process. Purchases over $5,000 must go through a Delegated Purchasing Agent or Purchasing Services.

Spending over the limits – Spending over the limits is defined as placing an order for more than the approved single or monthly limit(s). Purchasing Card limits are assigned and approved by the respective Department, Dean’s Office and Purchasing Card Program staff.

Special Approval Purchases – To comply with University policies, state statutes, and federal regulations, UW-Madison departments must obtain prior approval and/or fill out required forms for the products/services listed in the Policy & Procedure (PPP#4) – Special Approvals list. Purchasing Services, delegated purchasing departments and cardholders cannot initiate a purchase for the products/services listed until approvals are obtained, regardless of the dollar amount. (bussvc.wisc.edu/purch/ppp4.html)

Travel Related Expenses

Travel expenditures on a Purchasing Card without travel authorization - Prior to using the Purchasing Card for travel and/or travel-related expenses, the cardholder must obtain approval from their Department and Dean’s Office and subsequently sign a travel agreement form. The cardholder must attend the Accounting Services Purchasing Card training session which covers the general policies and procedures and the travel training session, which covers the travel-related policies and procedures.

Travel Purchasing Card Incidentals–Approval to use a Purchasing Card for travel related expenses is granted by the respective Department and Dean’s Office on an individual basis and is limited to contract airfare, hotel and contract car rental. Items listed as not allowable on the Cardholder Agreement Form, and all other incidental charges must be paid on a personal liability card.

University of Wisconsin – Madison

Noncompliance Procedure

Proper documentation and record retention are imperative to the success of the card program. Cardholder records are to be reconciled by the Site Manager on a regular basis to verify documentation is complete and policies are being followed. Transaction reallocation is done according to the bi-weekly editing schedule. All transactions must be reviewed, at a minimum, on a monthly basis. Impromptu, random audits may also be conducted by the Dean’s Office and/or Accounting Services Purchasing Card staff at any time. Missing documentation and/or noncompliance are to be addressed immediately by the reviewer (Site Manager, Dean’s Office or Purchasing Card staff).

If upon review of the bi-weekly records, the Site Manager discovers insufficient supporting documentation or cardholder noncompliance, the cardholder will be verbally asked to rectify the situation prior to the Thursday edit deadline. The requested documentation must be produced and/or the situation properly rectified to the Site Manager’s satisfaction within the allotted timeframe or the “Purchasing Card Follow Up” form will be used to document the request.

If the Follow Up form does not produce a satisfactory response from the cardholder within 10 days, the form is elevated to the next level. Site Managers will forward it on to their Dean’s Office for their review and recommended course of action. If completed by the Dean’s Office after a Division’s review of a Department’s cards, it will be sent on to the U.W. Madison Purchasing Card Program Manager with their comments and recommendations. The reverse side of the Follow Up form provides the Dean’s Office with several recommendation options.

The U.W. Madison Purchasing Card Program Manager will review the follow up form and consider the Dean’s Office recommendation. If the recommendation is outside the normal scope of action for the indicated noncompliance, the Program Manager will contact the Dean’s Office to discuss the next steps. If the recommendation falls within the usual course of action, the Program Manager will respond to the Dean’s Office with a memo confirming the action being taken. A copy will also be sent to Internal Audit and filed away in the Cardholder’s file. The Dean’s Office will notify the Site Manager, Department Chair and Cardholder of the action being taken. Non-adherence to policies and procedures and/or misuse may result in the revocation of cardholder privileges and appropriate disciplinary action.

All personal purchases made on the card are to be reported immediately upon discovery to the Dean’s Office via the Purchasing Card Follow-Up Form, regardless of the dollar amount, degree of inappropriateness, cardholder’s explanation and/or corrective measures taken.

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