Minnesota West Policies

Chapter 7 - Finance

7.3.3 Purchasing Credit Card Program Procedures


Part 1.  Authority

System Procedure 7.3.3, Credit Cards, provides authority for a college, university or office of the chancellor to establish a credit card program for business use only. Each college, university, or office of the chancellor using a Purchasing Credit Card Program must establish procedures and forms for implementing and monitoring the program.

 

Part 2.  Purpose

The purpose of the Purchasing Credit Card Program is to provide an alternative form for purchasing necessary business commodities and services easier and faster. The program will also shorten the approval process and reduce time and paperwork for processing of high volume small dollar amount purchases.

 

The program should eliminate many typical purchasing steps such as preparing a requisition, preparing a purchase order, matching a packing slip to a purchase order, matching invoice with purchasing requisitions, individual payments of invoices, etc.

 

Part 3.  Application for Purchasing Card

A completed Purchasing Card application form is required for each cardholder. No employee will be able to apply for a Purchasing Card unless his/her supervisor gives approval.

 

The address used on the cardholder application for the employee will always be their Minnesota West Community and Technical College mailing address.

 

Part 4.  Purchasing Card Program Cardholder Agreement

All cardholders must sign and accept the terms and conditions of the Minnesota West Community & Technical College "Purchasing Card Program Cardholder Agreement."


Part 5.  Purchasing Card Requirements

The Purchasing Card will be customized to each cardholder's needs and will include:

 

  1. A dollar limitation on the card.
  2. A dollar limitation of purchasing authority per transaction.
  3. A dollar limitation of purchasing authority for the total of all charges made during each monthly billing cycle.
  4. Merchant category blocking.

 

The Purchasing Card will be coded with Minnesota West Community and Technical College tax sales exempt number.

 

Part 6.  Cardholder's Responsibilities

The cardholder will be responsible for signing the card when it is received, the security of the card and all transactions made against it. Purchases made against the card will be considered to have been made by the Cardholder.

 

The cardholder shall request a copy of the vendor's sales receipt or cash register slip if over the counter, or a packing list on shipped orders as well as the credit card slip. The cardholder's individual purchasing card number and his/her name must be given for all orders processed and specific delivery instructions must be provided to the vendor. The purchased goods shall be delivered directly to the college/university receiving dock.

 

All purchase transactions processed against the Purchasing Card must be made by the employee to whom the card is issued.The card cannot be used by another person or for personal use. The card cannot be transferred from one employee to another.

 

Cardholder must inform the vendor of MnSCU's tax exemption status.The tax exempt ID number is printed on the card.

 

All purchase transactions must be recorded on the Purchasing Card Individual Transaction Log each month and signed as to verification of the transactions by the Cardholder. Receipts, packing slips, etc. must be attached to the Purchasing Card Individual Transaction Log. Monthly statements must be reconciled with the transaction log and submitted to the Business Office within five (5) days after receiving the monthly statement.

 

Part 7.  Purchasing Card Restrictions

The Purchasing Card cannot be used for the following transactions:

 

  1. Items for personal use
  2. Items for non-college, non-university purposes
  3. Cash or cash advances
  4. Food and beverages for individual employee (Authorized cards may allow for food and non-alcoholic beverages for business-related meetings in compliance with system procedures and after obtaining approval for special expenses.)
  5. Alcoholic beverages
  6. Weapons or any kind of explosives
  7. Relocation expenses
  8. Travel related expenses (To be reimbursed using SEMA4 Employee Expense Report form. Authorized cards may allow for airfare, room and related taxes, vehicle rental, and conference and seminar registration).
  9. Entertainment
  10. Recreation
  11. Drugs or pharmaceutical products
  12. Flowers, holiday decorations, or personal objects (such as kleenex tissues, greeting cards, invitations, paper cups or plates, pictures, radios, coffee pots, heaters, refrigerators, microwave ovens, art objects, etc.)
  13. Items which would be given away for promotional purposes
  14. Dues, memberships, or subscriptions
  15. Parking fees or taxi expenses
  16. Expenses for faculty and staff recruiting, advertising, or entertainment of prospective employees
  17. Gifts, donations, or contributions to individuals or organizations
  18. Payments to other College/University departments
  19. Refunds of revenue
  20. Payments to vendors in foreign countries (including Canada)
  21. Purchase of or removal of hazardous or radioactive materials
  22. Lab animals
  23. Time payments
  24. Pyramiding (multiple purchases to cover same transaction)
  25. Tuition payments
  26. Consulting services

 

Part 8.  Purchasing Card Process

A statement of all transactions will be sent from the Business Office to the cardholder.


Upon receipt of the statement, the cardholder will sign and date the statement to confirm receipt of all goods and services, will attach the original receipts which correspond to the statement, and return to the Business Office within five (5) business days. All purchases will be charged to the cost center that the individual purchasing card is assigned to - or in the case of multiple cost centers - to the cost center noted on the statement by the cardholder.

 

Minnesota West Community & Technical College is responsible for payment of all purchases.

 

Part 9.  Discrepancies

The cardholder will complete the Cardholder Dispute Form and notify the Business Office if there are any discrepancies with any of the charges listed on the statement. The cardholder, with the help of the Business Office, will settle any billing discrepancies with the vendor and instruct the vendor to issue a credit through the credit card.


Disputes must be reconciled within fourteen (14) days of the statement date.

 

Part  10. Lost, Stolen or Unauthorized Use

The cardholder is responsible for the security of his/her card and any purchases made on the card.

 

The cardholder will immediately notify the credit card company and the Business Office if the card is lost, stolen or in the hands of an unauthorized person. Pertinent information regarding the lost or stolen card or improper use must be provided. The cardholder will make a reasonable attempt to recover the card from an unauthorized person. The card will be voided as quickly as possible; however, the applicable cost center will be responsible for any unauthorized purchases made up to the limit of liability.

 

Part  11.  Cardholder Account Maintenance

Any changes to a Purchasing Card must be made using the Cardholder Account Maintenance Request form.

 

Part 12.  Accountability

Each cardholder is responsible for the card issued to him/her. All purchasing card records are subject to being audited.

 

Approved by: Ric Shrubb, President
Date: June 2010
History & Revision