304.07

Northern Arizona University
Purchasing Policy and Procedure

PURCHASING CARD

PURPOSE: To facilitate purchases for low dollar and contract items quickly and efficiently.

POLICY:

The current dollar limit per Purchasing Card transaction is $5,000. This limit can be set for each individual card, and departments can obtain a higher transaction limit by justifying the need.

Cardholders and Liaisons (Liaisons are departmental p-card reviewers) are required to take an on-line training course prior to receiving a Purchasing Card or authority to act as the departmental Liaison. Course material for the on-line training consists of the Training Manual, Quick Reference Guide and Forms. The Training Manual details the Purchasing Card program, the Quick Reference Guide details information about how to use the bank's website and the Forms page contains all of the Purchasing Card forms.

The Cardholder must maintain a monthly Transaction Log for each purchasing card transaction that occurs during the month and reconcile to the bank's monthly transaction statement. The Cardholder submits their Transaction Log and associated invoices or cash register receipts to the Liaison by the 10th of the month following the reconciliation period. The Liaison signifies that the transactions are reasonable, appropriate and that the Transaction Log balances to the bank's statement by signing the monthly Transaction Log. Departments must retain the invoice or cash register slip, Transaction Log and monthly bank statements for five years.

Card transactions map to an object/sub-object code in Advantage based on the merchant category code of the supplier.

Review:

o  Each month the department Liaison reviews each Cardholder's Transaction Log.
o  Purchasing Services reviews all Purchasing Card transactions daily.
o  Departments are periodically audited by the University's Comptroller office.

 

The following is a list of goods and/or services that are not allowable purchases with the University’s Purchasing Card. Purchasing Card purchases of goods and/or services from the following list shall be considered a violation to Purchasing Card policies and procedures and may jeopardize further Purchasing Card program participation.   

o     Alcoholic Beverages

o     Animals of any type, dead/alive

o     Bars/Cocktail-Lounges/Discotheques/Nightclubs/Taverns/Drinking Establishments

o     Bottled Water

o     Capital Equipment (items costing more than $5000)

o     Cash Advances

o     Employee Appreciation/Recognition Items/Gifts

o     Entertainment

o     Financial Institution/Travelers Checks/Securities/Insurance

o     Fines/Penalties

o     Firearms/Ammunition/Explosives

o     Flowers

o     Food Supplies (paper/plastic products, i.e., cups, paper plates, plastic utensils, napkins, etc.  Items that are not directly tied to a authorized University sponsored function)

o     Furniture from any vendor other than Walsh Bros. or HON from Corporate Express.

o     Gifts/Contributions

o     Legal Fees

o      Loans

o      Material prohibited by State or Federal law (like fireworks or controlled substances)

o      Meals

o      Narcotics/All Drugs

o      Package Stores/Beer/Wine/Liquor

o      Personal Purchases

o      Purchases from University employees

o      Purchases in which a University employee has a conflict of interest, and that employee participates in the purchase process                     

o      Quick Payment Services/Fast Food Restaurants/Restaurants

o      Radioactive Materials

o      Rare and Precious Metals

o     Renovation/Construction/Removal and/or Installation services that may impact/disturb Asbestos Containing Material (ACM) or Presumed Asbestos Containing Material (PACM).

o      Splitting purchases to circumvent the $5000 Limit

o      Telephone (pre-paid) Cards  

Any exceptions to the above list shall be handled on an individual basis and shall be directed to the Purchasing Services contact prior to incurring the expenditure. 

Certain Sponsored accounts have additional restrictions.