Using a University Corporate Card

The Travel & Expense Card and Procurement Card are part of a corporate card program, paid directly by the University each month. The University provides corporate card options for mission-related purchases where the goods or services are not available in U Market, where the nature of the purchase does not require the use of an official University purchase order, or for use by employees traveling on University business. Both departmental and individual cards are issued to an employee who assumes all responsibility for using the card.

• Procurement Card (PCard)
  • Used to purchase goods or services for mission-related purposes
  • Issuance subject to approval by campus or college financial leadership
  • Cards are issued for individual or departmental use
• Travel & Expense Card (T&E Card)
  • Used to pay for one’s travel expenses for University mission-related business
  • Used to pay for hospitality events, either locally or while in travel status
  • Available to any employee traveling on University business
  • Issuance subject to approval by campus or college financial leadership
  • Cards are issued for individual use

All expenses incurred on corporate cards must comply with the University's Accountable Plan, University financial policies, be accounted for in a timely manner, and requirements or restrictions of funding sources. Failure to comply with this policy and all associated policies and procedures may result in card suspension, card cancellation, reporting expenses as taxable income, repayment by the employee, and disciplinary action up to and including termination of employment.

Card Eligibility

Cardholders must have an active employee record (on payroll), completed the appropriate online training, and have approval from the employee’s academic/administrative unit head to have a card. Employees must submit a signed “Cardholder Agreement” with their application.

• Includes a “Code of Ethics” that applies to any University of Minnesota employee who may directly or indirectly influence a purchasing decision by establishing specifications, testing purchased products, evaluating contracted services, or otherwise having any involvement in the purchasing or contracting process.

See Appendix: Corporate Card Program Overview for additional information.

Card Limits

There are standard single-transaction and monthly card limits; however, Department Card Administrators and Chief Financial Managers (CFMs) may request a different limit for individual cardholders. Cardholders must not split purchases with a supplier to avoid the single-transaction limit. See Appendix: Corporate Card Program Overview for additional information and standard card limits.

Documentation and Reconciliation

Cardholders must regularly review all corporate card activity to ensure that charges are legitimate, assign appropriate ChartField string distributions, add justifications for each expense, submit receipts, and process a dispute with the issuing bank or contact a merchant directly regarding unidentified items promptly.

Cardholders must submit complete documentation for business or hospitality events, including business purposes, names of attendees, and business relationships per Administrative Policy: Processing, Documenting, and Approving Financial and Accounting Transactions.

The University Accountable Plan complies with current Internal Revenue Service (IRS) requirements. Corporate card expenses paid in accordance with the University’s Accountable Plan are not taxable income to the individual. Transactions that do not follow the Accountable Plan due to lack of documentation or untimely submission for approval may be reported as taxable income or be required to be repaid. See Administrative Procedure: Reconciliation and Approval of Corporate Card Activity for additional information and the required timeframe for reconciliation.

Cardholders who choose to leave the University must reconcile all pending expenses prior to their last day of employment. Any unaccounted expenses may be invoiced to the cardholder for repayment or be treated as taxable income to the employee.

Receipts

Cardholders must submit receipts for all purchases. Transactions for travel-related expenses may follow guidance provided in the Administrative Policy: Traveling on University Business.

Expenses Related to Students

A University corporate card may be used for student expenses if the expense has a business-related purpose and justification. Costs related to a student’s education must be paid through Student Finance. Refer to Tax Management Office Guideline (TMOG) #8 for additional information on payments to or expenses for students every time a student needs to be paid.

Traveling with students or non-employees

Cardholders traveling with students or non-employees may pay for the lodging expenses of the students or non-employees on their card. Meals and other travel-related expenses are allowable with prior approval from the Chief Financial Manager. Travel meals must still follow per diem limits per the Administrative Policy: Traveling on University Business.

Student-Athlete Team Travel

Employees traveling with student-athletes must not use personal funds (cash or personal credit cards) to pay for team travel. Cardholders traveling with a team may use their University travel card to pay for team-related travel expenses.

Oversight/Compliance

Department Card Administrators (DCA) and Chief Financial Managers (CFM) are responsible for monitoring potential violations and helping coordinate the use of University Corporate cards for a campus, college, or administrative unit. They may set additional restrictions for use by those within their campus, college, or administrative unit.

Exceptions to the policy should be rare and have a valid justification. The Chief Financial Manager or Department Card Administrator may request an exception by submitting the request to [email protected]. A record will be kept of all exceptions.