Corporate Card
1. PURPOSE
The purpose of the university corporate card program is to give directions to the administration of corporate cards and the operational support necessary for use of corporate cards for the acquisition of approved items and services. The card is designed to eliminate the formal purchase order and invoice processing associated with low-dollar value transactions and to provide flexibility and convenience in making business purchases.
2. POLICY
Corporate cards are generally issued to a specific individual, and each cardholder is responsible for a monthly review of each transaction involving their card. The university pays all charges made on all cards. Each card is individually authorized, and most cards will come with a single transaction limit of $2,500 and a monthly transaction limit of $10,000. Limit increases are recommended by the supervisor and approved by a vice president and the corporate card administrator. Each card has an approver, in addition to the approval required of the cardholder, who is responsible to review each transaction, compare it to the detailed receipt provided by the cardholder, and approve or dispute the transaction in accordance with university policies and procedures. The usage of the card may be blocked for selected categories of businesses and unauthorized uses.
3. IMPLEMENTATION
3.1 Authorization to Obtain a Corporate Card
Managers, directors or deans determine the need for corporate cards in their area and who will be issued a card.
Each approved employee must complete a corporate card application and cardholder agreement prior to receiving a corporate card. By agreeing to the terms of the application and agreement, the employee represented that they understand:
- the intent of the corporate card program
- how to use the corporate card, including compliance with applicable policies and procedures
- guidelines established for the program
- the disciplinary actions that may be applied if the employee misuses the card.
The senior purchasing manager also approves the corporate card application. The approval provides sign-off on those aspects of the corporate card program that can be approved prior to a corporate card purchase, such as:
- The authorized requestor’s (cardholder) authority to approve purchases and the expenditure of funds against budget,
- Availability of budget and consideration of budget implications,
- Appropriateness of the assigned account codes.
3.2 Change of Employment
A cardholder who leaves university employment must immediately surrender their corporate card and any outstanding transaction information (e.g., receipts) to their supervisor. Cards are also surrendered if an employee transfers to a new university department, in which case a new cardholder agreement form must be completed.
3.3 Cardholder Reconciliation Process
The cardholder is responsible to reconcile all activity listed on the statement for accuracy. Cardholders ensure that any debits or credits expected as the result of returned or exchanged goods or credits from disputed charges from the previous month are accurately reflected on the account.
3.4 Prohibited Transactions
The following are prohibited uses of the card unless specifically approved by Purchasing. Violations of these prohibitions may result in disciplinary action which may include termination.
- Securing cash advances from a bank or automatic teller machine (ATM).
- Allowing anyone but the cardholder to use the card.
- Making personal purchases.
- Splitting transactions to fit a purchase into the spending limits.
- Purchase of gasoline for a personal vehicle.
Transactions that require the university to issue an IRS 1099 statement, such as when payment goes either to individuals for rent, medical, prizes and awards, compensation for services performed as a non-employee, or payment to an unincorporated business, should not be paid for with a corporate card.
3.5 Correction of Errors
Upon review of transactions, the cardholder is responsible for correcting errors and questionable charges. In the case of a disputed charge, the cardholder should first attempt to reconcile the charge with the applicable supplier. If the supplier agrees that an error has been made, the cardholder should request that the supplier adjust the charge(s) made to cardholder’s account by posting a credit to the corporate card account. The cardholder should never accept cash as a means of correcting an error on a corporate card account. Errors that cannot be corrected with a supplier must be resolved by contacting the corporate card provider within 60 days of the transaction posting date.
3.6 Reporting Lost, Stolen, or Misused Cards
Immediately notify the corporate card provider’s customer service if the card is lost, stolen, or is being misused.