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Policy Statement
The University provides a procurement card program for business-related purchases where the good or service is not available in U Market, or where the nature of the purchase does not require use of an official University purchase order.
Employees who have purchasing responsibility must document a commitment to ethical purchasing practices by signing a Purchasing Code of Ethics for Department Employee Responsible for Purchasing. This would apply to any University of Minnesota employee who may 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. Textbooks and other course materials authored by an employee of the University are exempt from this process. Faculty may also accept free samples of textbooks and related teaching materials. The signed Purchasing Code of Ethics for Department Employee Responsible for Purchasing should be completed annually and maintained in a central departmental digital file. Purchasing Services employees must document their commitment to ethical practices by signing a Purchasing Code of Ethics.
The Chief Financial Manager (CFM) is responsible for monitoring for violations and may set additional restrictions for use by those within their college or administrative unit and may designate another individual in their unit to manage PCard activity and approve card applications (including what type of cards may be issued), and suspend and cancel cards.
Individuals who fail to comply with this policy and all associated procedures may result in card suspension, cancellation, and disciplinary action up to and including termination of employment.
General Requirements
- Cardholders must be current employees (on payroll) who have purchasing responsibilities.
- Cardholders must complete the online training: PCard Cardholder Training: Using the University PCard before a card is issued.
- Cardholders must submit a signed “PCard Cardholder Agreement” with application.
- A signed agreement is required every three years, before a renewal card will be reissued.
- Cards are issued to an employee who assumes all responsibility for use of the card.
- Supervisors/units must cancel the procurement card when a cardholder is terminated, transfers to a new RRC (Resource Responsibility Center), or no longer performs purchasing duties.
- Cardholders who transfer to a new RRC may complete an application for a new card if applicable to their new duties.
- All transactions must be verified and approved within 30 days of the transaction becoming available in the financial system.
- Administrative Procedure: Verification and Approval of PCard Activity
Cardholders must
- Use the card only for business related purchases of goods and standard (not professional) services up to $2,500 per individual transaction ($10,000 monthly).
- Not split a purchase to avoid $2,500 transaction limit.
- Not use the card for personal purchases.
- Not use the card for purchase of alcoholic beverages.
- Charge the purchase to non-sponsored and sponsored ChartField strings and must comply with sponsor and University policies.
Individual and Departmental Cards
- The individual submitting the card application must identify the need for either an individual card or a departmental card.
- Individual cards are used by employees for purchases that are necessary to do their job, or for a program or project over which they have primary or individual purchasing responsibility.
- Departmental cards are used for purchases that are necessary for departmental operations, or that are essential for the functioning or advancement of a University program or project. Departmental Cards may be used by someone other than the cardholder and may be issued in order to reduce the number of cards within a department or unit.
- The employee who is responsible for the card must set up internal processes to safeguard the card and ensure that transactions can be identified to the individuals who use the card.
- Anyone who uses a PCard should read and sign the “PCard Cardholder Agreement”. A copy of the agreement should be kept on file with the employee who is responsible for the card.
- It is recommended that a tracking log be used to keep track of the card and purchases made with the card.
- The employee who is responsible for the card should reconcile the PCard activity on a weekly basis.
- The employee who is responsible for the card must set up internal processes to safeguard the card and ensure that transactions can be identified to the individuals who use the card.
Sales Tax
- Cardholders must understand and comply with applicable sales tax rules.
Violations
CFMs have been delegated responsibility for monitoring for violations and may set additional restrictions for use by those within their college or administrative unit. Violation of University or unit policies, or the cardholder agreement, may result in loss of card privileges.
At a minimum, these are violations of policy:
- Split purchases to avoid the $2,500 transaction limit
- Personal purchases
- Purchase of alcoholic beverages
- Purchases that violate Minnesota Statute 15.43
Reason for Policy
The purpose of this policy is to provide guidelines for the issuance and use of the PCard and ensure that sufficient controls are in place to mitigate risk. Responsibility for financial control of the use of the procurement cards rests with each college or administrative unit.