Purchasing Cards (Pcards) (4.10)

PROGRAM OVERVIEW

A P-Card is a credit card that authorized University personnel may use to purchase goods and services for use by the University. P-Cards are issued to individuals who meet the appropriate requirements and can only be used by the individual named on the card. Columbia University is liable to the financial institution that issues the P-Cards for all valid transactions and pays the financial institution directly. P-Card transactions bring greater efficiency to the purchasing process because transactions can be made without a purchase order and payment is streamlined.

RESPONSIBLE UNIVERSITY OFFICE

The Purchasing Office is responsible for administration of the Purchasing Card program, policies, and procedures in close coordination with Accounts Payable, Treasury and the Controller?s office.

WHO SHOULD KNOW THIS POLICY

It is the responsibility of all University personnel who participate in the P-Card program to review and understand this policy.

CARDHOLDER ELIGIBILITY

 

Columbia University faculty, staff and students may apply for a P-Card if their job requires them to make legitimate, frequent, business-related purchases for non-travel related purposes under $2,500. The Cardholder will be designated through the DAF process in accordance with the DAF policy. At the discretion of the Sr. Director of the Purchasing Card Program, cards may also be issued on a case by case basis to non-University employees where:
a) it is in the University's interest to do so;
b) written procedures are in place to ensure control of transactions by such Cardholders is consistent with University policy; and
c) ultimate responsibility for identifying and addressing any misuse of the card or failure to adhere to policy has been clearly assigned to an appropriate University employee.

PURCHASE GUIDELINES

In general, purchases of goods or equipment valued at $2,500 or less may be charged so long as the purchase is not for a restricted commodity http://cpmcnet.columbia.edu/dept/purch/policies.html for which purchases are subject, by University policy, to prior approval by one or more oversight departments.

The P-Card may also be used to procure some types of non-consultant services.? In general, non-consultant services may be purchased via the P-Card so long as they are governed by a University-wide Purchasing Agreement (UWPA), or where they involve standard contractual terms and conditions entailing little or no risk to the University. Services governed by contractual terms and conditions with provisions relating to insurance, indemnification, warrantee, license requirements, etc. may not be purchased via the P-Card without prior approval.

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P-CARD FRAUD AND MISUSE

Fraud/Misuse

• Purchase of items for personal use
• Purchase of restricted commodities http://cpmcnet.columbia.edu/dept/purch/policies.html
• Purchase from restricted suppliers http://cpmcnet.columbia.edu/dept/purch/policies.html
• Splitting of purchase or service cost over multiple card transactions in order to circumvent the authorized transaction limit
• Use of the card by anyone or any department other than the authorized user

Administrative Deficiencies

• Failure to obtain and forward applicable supporting documentation for all card transactions
• Lack of timely and proper reconciliation of posted transactions
• Misallocation of charges to sponsored project accounts in a manner that is inconsistent with federal or other guidelines

CARDHOLDER

The Cardholder is the only person authorized to use the card issued to them. The P-Card must ONLY be used for University expenses in accordance with Columbia University Purchasing Policy http://cpmcnet.columbia.edu/dept/purch/policies.html. Any other use is prohibited. All transactions on the P-Card are the responsibility of the person to whom the card is issued. Any transactions that a Cardholder makes that violate this P-Card Policy, Purchasing Policy or any other related policy may result in a warning, suspension or revocation of the card, termination of employment or other disciplinary action in accordance with University disciplinary policies.

It is the Cardholder?s responsibility to review all transactions for accuracy, reconcile with invoices/receipts/records, assign proper accounting, and approve/send for approval as quickly as possible after the purchase but at a minimum of once a week.

It is the Cardholder?s responsibility to provide sufficient documentary support to the P-Card staff for all transactions $75 and over. Sufficient documentary support should include an original receipt with sufficient detail to support the stated business purpose for the purchase. For all receipts under $75, the Cardholder should follow the department or school?s receipt procedures.

APPROVER

An Approver is a person who approves purchases that have been made by the Cardholder(s) to which he or she is assigned in accordance with the Purchasing Policy and the University?s authorization policies. It is the Approver?s responsibility to verify that the transaction(s) he or she is approving meets the following criteria:

• The item was purchased in accordance with the University?s Purchasing Policy, including the use of preferred vendors where applicable
• The item purchased was/is to be used for University purposes/business
• The item purchased was properly and completely received as ordered by the University
• For each item valued at over $75, there are proper receipts that provide sufficient detail to document the nature of the purchase
• A description of each purchase charged and the business purpose for the purchase is included in the card management system
• Sales Tax is itemized and accounted for separately for each transaction where such tax is included in the transaction
• Accounting assignments are in accordance with University and Department policy.

 

DEPARTMENTAL P-CARD ADMINISTRATOR

The Departmental P-Card Administrator is responsible for managing the documentation related to new card applications, changes in cardholder information (name, mailing address, increase or decrease in limits, etc.), and changes in a Cardholder?s employment status at the University. The Departmental P-Card Administrator is generally responsible for ensuring that all P-Card activities within his or her department are managed in accordance with this and all other University policies. The DPAD is designated by the Vice President, Associate Dean, or Departmental Administrator/Business Manager.

For information about the other roles in the program, please refer to the full Purchasing Card Policy.