3.43 Purchasing, Accounts Payable, and Card (P-Card Policy)

3.43 PURCHASING AND ACCOUNTS PAYABLE

Purchase of Goods and Services

All purchases and expenditures of University funds must meet the ordinary business standard of reasonable and necessary, with prudent consideration of the University's limited financial resources. Purchases of goods and services on behalf of the University may be authorized by a department head, and should not exceed the department's budgeted amounts or, in the case of restricted accounts, should not exceed the restricted fund balance.  Purchases over $5,000 require the approval and signature of the department head and the Vice President of the department, and purchases over $10,000 require an additional signature of the President. The President and Senior Vice President of Administration and Finance are authorized to sign contractual agreements.

Every reasonable effort should be made to obtain the best possible quality, service and price. For larger non-routine purchases and contracts, competitive proposals should always be solicited and evaluated. Even for routine purchases, vendor prices should be checked periodically.

When federal funds are used to cover purchases or contracts that exceed $25,000, the University verifies that the entity is not suspended, disbarred or otherwise excluded from participating in the transaction.  The University does so by either:

1. Checking the System for Award Management (SAM) Exclusions maintained by the General Services Administration (GSA) and availableat https://www.sam.gov/portal/public/SAM/ (Note: The OMB guidance at 2 CFR part 180 and agency implementing regulations still refer to the SAM Exclusions as the Excluded Parties List System (EPLS)),
2. Collecting a certification from the entity, or
3. Adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).

1. Purchase Orders

   All purchases of goods and services should be initiated electronically via Self Service or on a University paper purchase order form. The completed form requires the signature of the department head or Dean of the College requesting the purchase, and the VP according to approval requirements listed above.  The purchase order is a legal document and, when accepted by the vendor, constitutes a contract between the University and the vendor. It should therefore contain all pertinent details of the agreement such as terms and conditions of sale. Purchases made by one department on behalf of another department require a countersignature.

2. Check Requests

   Check requests are used to process disbursements not processed through usual purchasing procedures. These disbursements include personal reimbursement, subscriptions, honoraria, professional fees, petty cash reimbursement and those purchases where a purchase order is not used. All check requests, including those for personal reimbursement, require the approval of the department head and original supporting documentation. Personal reimbursements submitted by department heads require approval by the appropriate senior administrator. Check requests submitted that do not have the proper support and approval or budget account number will be returned to the originating department.

   1. In rare instances a department head may require a cash advance to fund a specific activity (e.g., Alumni Weekend). The advance must be approved by the appropriate senior administrator. A full accounting of the use of the funds and appropriate supporting documentation must be submitted to the Controller’s Office no later than one week after the date of the advance. Unused funds must be returned to the Controller’s Office.
   2. Check requests to individuals, partnerships and unincorporated businesses for professional services, contracting, honoraria, prizes and awards, etc. require the individual’s social security or the business tax identification number and permanent address for tax reporting purposes (E-II). This should be reported to the Controller’s Office using IRS Form W-9 (E-V), which is available on the IRS website at www.IRS.gov.   Please note that the University will not release checks missing this information. At the end of the calendar year, these individuals and businesses will receive IRS Form 1099 if payments to them exceed $600.
3. Invoices

   All invoices submitted to the Controller’s Office for payment, including those resulting from a purchase order, must be reviewed and approved by the originating department. This is necessary to ensure that the goods or services purchased have been received or delivered in good order. All approved invoices must be submitted with the Purchase Order number or a Voucher number.

4. Processing of Checks and Manual Checks

   Payments are processed through Accounts Payable weekly.  Interim manual checks may be processed with approval of the Senior Vice President of Finance or Controller.  The number of signatures required on a check is based upon amount of the disbursement which is set by the Board of Trustees.

5. Special Instructions Regarding Payments to Nonresident Aliens

   All payments for compensation made to or on behalf of our foreign (nonresident alien) visitors are subject to withholding and must be reported to the Internal Revenue Service. Visitors who are from countries with tax treaties with the U.S. must have a U.S. taxpayer ID number and complete IRS Form 8233 to claim exemption from the withholding rules. The Controller’s Office cannot issue checks to nonresident aliens until the required documentation is received and Form 8233 is mailed to the IRS. Some payments to or on behalf of foreign visitors for travel expenses can be made without a U.S. taxpayer ID number. Please consult with the Controller’s Office for further information.

6. Sales and Use Taxes

   Purchases made on behalf of the University are exempt from Georgia State Sales and Use Taxes (E-VI). The University is also exempt from Sales and Use Taxes in various other states.  The Controller’s Office maintains a list of states where the University holds tax exemptions.

7. Purchasing Card
   1. The Piedmont University PNC Bank VISA purchasing card (P-Card) is a standard issue VISA card available to approved University employees for authorized business purchases within the delegated authority limit. The P-Card is the University's primary tool for purchases of business- related items under $5,000, primarily for travel and university-related expenses (see the complete list of exclusions below). Cardholders must follow Piedmont University’s policies and strive to obtain the maximum ultimate value for each dollar of expenditure. Additionally, University employees and officials assigned P-Card responsibilities should familiarize themselves with the University’s policies regarding the P-Card.
   2. Full-time employees who are authorized to purchase goods may request a P-Card; however, individual departments can impose more restrictive requirements and limits. P-Cards are assigned to individuals and the individual whose name appears on the card is ultimately responsible for charges to the card. Sharing P-Cards is prohibited.
   3. Purchases made with the Piedmont University P-Card must only be for the use and benefit of the University. Misuse of the P-Card may result in disciplinary action up to and including termination. Accounts Payable will suspend P-Card privileges when policies and procedures are not followed or when the P-Card is used for prohibited purchases or personal use.
8. Purchasing Card Procedure:
   1. Requesting a P-Card
      1. Applications may be obtained from the P-Card Administrator in the Accounts Payable department. Complete a Purchasing Card application and have it authorized by your Department Manager and area Vice President. You may not approve your own P-Card application. Applications may be submitted in hard copy form to The P-Card Administrator or by e-mail at pcard@piedmont.edu .
      2. The P-Card is issued by Accounts Payable upon the accountholder's completion of mandatory training on P-Card policies & procedures. The accountholder must also sign a Piedmont University Purchasing Agreement upon receipt of the card.
   2. Requesting Approver Authorization

      Complete an Approver Application/Change Form and have it authorized by your Department Manager and area Vice President. You may not approve your own application. Submit the application to the P-Card Administrator (pcard@piedmont.edu).

   3. Accountholder Responsibilities
      1. Accountholder responsibilities include safeguarding the P-Card, purchasing appropriately, reviewing and monitoring transactions, and maintaining receipts.
      2. The accountholder is responsible for safeguarding the card and is accountable for all purchases made using the card. The account holder may not share the card with non- employees, temporary or student employees under any circumstance.
      3. Loss of the card must be immediately reported to both PNC and the Purchasing Card Administrator (pcard@piedmont.edu).
      4. The Purchasing Card Administrator must be notified and the card returned to the Administrator if the accountholder changes departments or ends employment at Piedmont University. (pcard@piedmont.edu).
      5. The accountholder must promptly report disputed charges to PNC.
      6. The Purchasing Card account number may not be saved on any personal online accounts.

   4. Purchases and Receipt Tracking

      Receipts will be electronically retained by the P-Card Administrator for 7 fiscal years. P-Card holders must retain their hard-copy receipts for 2 fiscal years.

      1. Acceptable receipts for internet purchases include an e-mail confirmation, shopping cart list, or quote. The information on the receipt should match any packing slips received as well as the P-Card charge. All other charges must be supported with scanned original receipts.
      2. Purchases should include a description of the business purpose, names of individuals involved, and any other documentation needed to demonstrate the appropriateness of the business expenditure. The Account Holder is responsible for ensuring that all provisions of this policy and procedure are complied with through complete documentation and adequate explanations.
      3. The Account Holder’s Approver is responsible for reviewing and approving the monthly P-Card statement and the supporting documentation to ensure that the expenditures are consistent with Piedmont’s P-Card Policy. The Approver is an individual responsible for financial oversight and compliance with the University’s purchasing guidelines. The Approver may be the employee’s manager, cost center manager or other representative deemed permissible by the P-Card Administrator.
      4. P-Card Holders must be aware of and compliant with Piedmont’s Capital Purchasing Policy, Travel and Expense Reimbursement Policy.

   5. Appropriate Purchases
      1. Academic/classroom supplies not available through University resources
      2. Postage
      3. Books
      4. Express Postage
      5. Newspapers & Periodicals
      6. Dues & Professional Memberships
      7. Conference Registration Fees
      8. Travel

      Note: Do not put travel transactions purchased on a P-Card on an expense reimbursement form.

   6. Prohibited Purchases
      1. Personal items
      2. Alcoholic beverages
      3. Office Furniture
      4. Cash advances
      5. AP vendors accepting purchase orders
      6. Capital/asset purchases (at or above $5k)
      7. Info Tech purchases: software, desktop computers, laptops/tablets, fax machines, copiers, scanners, printers, monitors, audio /visual equipment, telephones
      8. Monthly telephone or internet service or other utility services
      9. Office supplies through a PO-approved vendor (online supply purchases are permissible)
      10. Gift cards or gift certificates (unless approved by the Controller in accordance with the Gift Card Policy)
      11. Gifts
      12. Deposits on future purchases
      13. Hazardous materials
      14. Construction and renovations
      15. Consulting services
      16. Firearms and ammunition (Campus Police permitted)
      17. Tuition & fees
      18. Laboratory animals
      19. Prescription drugs or other controlled substances
      20. Contributions/donations

9. Policy Violations

   Fraudulent and/or misuse of the card is grounds for revoking P-Card privileges and may lead to disciplinary action, up to and including termination of employment.

10. Approver Responsibilities
    1. Notify the P-Card Administrator if the accountholder changes departments. The accountholder’s card will be frozen until the new cost center manager approves the card.
    2. Notify the P-Card Administrator if the accountholder leaves Piedmont University’s employment.
    3. The P-Card must be returned to Accounts Payable if the accountholder leaves Piedmont.
    4. Review the cardholder's activity in Intellilink. Ensure all transactions are supported by receipts.
    5. A department manager cannot approve his/her own account activity.

11. Accounts Payable Responsibilities
    1. Process P-Card applications.
    2. Cancel cards when no longer needed.
    3. Run reports for procurement analysis.
    4. Review and approve use of P-Card for special circumstances.
    5. Suspend privileges when policies and procedures are not followed.
    6. Inactivate cards not in use for a period of 180 days.
    7. Issue renewal cards upon expiration.

This policy is not all-inclusive and does not substitute for sound business judgment; however, areas covered by the Policy must be followed as described. To the extent possible, administration of foundation or other non-federal grants will follow the guidelines set forth in the above Federal Grant Policy.

Questions concerning the policy should be directed to the P-Card Program Administrator or the Controller.