Purchasing Card Program Guide
Revised November 2015
Purchasing Card Program Guide i Revised November 2015
IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMTableofContents
ProgramPoliciesandProcedures Page
I. Introduction‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1
II. Financialpolicy‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2
III. Howitworks‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5
IV. Applicationprocess‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5
V. Orderingprocess‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6
VI. Proofofpurchasedocumentation‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7
VII. Transactionreconciliation‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8
VIII. Segregationofduties‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8
IX. Transactiondiscrepancies,disputesandfraud‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9
X. Reportingalostorstolencard‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9
XI. Employeetransferortermination‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9
Appendices
I. GeneralrulesforISUfunds‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 10
II. Expendituresinvolvingfoundationfunds‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 14
III. Vendingaccountusage‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 15
IV. Iowagiftlaw‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 16
V. Communicationtechnologyallowance‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 18
VI. Salestaxexemption‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 19
VII. Forms‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 20
VIII. Additionalresources‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 21
Purchasing Card Program Guide ii Revised November 2015
Purchasing Card Program Guide 1 Revised November 2015
IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMProgrampoliciesandprocedures
I. Introduc on TheIowaStateUniversitypurchasingcardprogramhasbeendesignedtoallowfortheprocurementoflow‐dollarsuppliesbytheenduserthroughtheuseofacreditcard.Theintentistoeliminatetheneedforsmalldollarpurchaserequisitions,vouchersandreimbursements.Thepurchasingcardprogramisdesignedtoimproveef iciencyinprocessingandcompletinglow‐dollarpurchasesofapprovedcommoditiesfromvendors/suppliersthatacceptaVISAcreditcard.Forthecardholder,usingthePurchasingCardwillprovidequickerturn‐aroundtimeonorders,widespreadacceptancebyvendors,andreducedpaperworkprocessing.ThePurchasingCardconceptisdesignedtodelegatetheauthorityandcapabilitytopurchaselow‐dollaritemsdirectlytotheenduser.ThestandardPurchasingCardmaybeusedforpurchasesofallnon‐restricted(acceptable)commodities(seeSectionII.4.–FinancialPolicy).ThePurchasingCardwithhospitalityrightsmayalsobeusedforpurchaseslistedinSectionII.3.–FinancialPolicy.EachPurchasingCardisissuedtoanamedindividualandtheUniversityisclearlyindicatedonthecardasthecorporatebuyerofproductsandservices.ThePurchasingCardisnottobeusedforpersonaltransactions.Thisprogramwillenableyoutopurchaseapprovedcommoditiesdirectlyfromvendors/suppliers.PaymentforallPurchasingCardtransactionsisperformedelectronically,whicheliminatestheneedtoprocessvendorinvoicesandtoissuechecksforpaymentofeachinvoice.WhenusingthePurchasingCard,chargesmaybedistributedamongmultipledepartmentalaccountandexpenseobjectcodecombinations.Purchasing,accounting,andtheinternalauditof icewillmonitortheperformanceofthePurchasingCardProgram.Questionsorconcernsregardingpolicyshouldbedirectedto: CoryHarms,InterimDirectorofPurchasing 515‐294‐2591 clharms@iastate.eduQuestionsaboutPurchasingCardprocedureorthereconciliationsystemshouldbedirectedto: Purchasinghelpdesk 515‐294‐1308 [email protected] LesleyLackore,ProgramAdministrator 515‐294‐4589 [email protected] ShariRussell,ProgramCoordinator 515‐294‐4573 [email protected] StacySassman,InterimAssociateDirectorofPurchasing 515‐294‐9390 [email protected] ShandraVanBerkum,ProgramAssistant 515‐294‐1308 [email protected]
Purchasing Card Program Guide 2 Revised November 2015
Equipment Itemsvaluedat$5000ormore,tagablefor
inventory,withausefullifeof1+year Automaticelectronicde ibrillators(AEDs) Computers(servers,desktops,laptops,tablets,iPads) Copiers Drones/UnmannedAerialVehicles(UAVs) PurchasesinvolvingtradeofISUproperty Telephones,cordlesstelephones,IPphones,cell
phonesandrelatedequipment(exceptfromcontractedvendors)
Travelexpenses Airlinetickets Hotelrooms(includingreservationofrooms) Meals Carrentals Parkingfees Gasolineandfuel
ToexternalvendorsforitemsavailablethroughUniversitystores,services&thecyBUYContractMarketplace
Printingandphotocopying Businesscardsandletterhead Postalandparcelservices Photocopiersupplies(includingtonercartridges) Cylindergasesandliquidnitrogen
Personalitemsandgifts Itemsforpersonaluse Giftsbene itinganindividualemployee(ifthe
fundingdoesnotallowsuchpurchases) Donations
Services Servicesrequiringasignedcontract Rentalofhigh‐value(>$5000)orhigh‐risk
equipment Constructionservices&repairoffacilities Professionalservices Movingservices(employeerelocation) Telecommunicationservices(exceptfromcontracted
vendors)
Itemsrestrictedduetostandards/reportingissues Packagealcohol Controlledsubstances Computers(servers,desktops,laptops,tablets,iPads) Firearms,weapons,andammunition Furniture,furnishings,andartwork
(exceptfromcontractedvendorthroughAccessPlus) ItemsforCampusOrganizations Itemsfromcon lictofinterestvendors Itemsfromon‐lineauctions Laboratoryanimals,livestock,animalcagesand
aquariums Leases/rentaloflandand/orof icespace Pharmaceuticalsanddrugs Radioactivematerialsandhazardousmaterials
Additionalrestrictionsforcardholderswithouthospitalityrights
Hospitalityexpenses Mealsandfoodforconsumption Entertainmentexpenses Interviewexpenses HotelroomsforvisitorstotheUniversity
II. Financial Policy
1. ThePurchasingCardisavailabletoallfacultyandstaffofIowaStateUniversitywiththeapprovaloftheirrespectivedepartmentchairordirectoranddean,vice‐presidentorprovost.AllcardholdersmustsignandacceptthetermsandconditionsoftheIowaStateUniversityPurchasingCardProgramCardholderAgreementandtheStatementofPurchasingCardReceipt.
2. CardholdersareexpectedtopurchaseitemsthatarestockedatUniversityStoreswheneverpossible
unlesssubstantialsavingscanberealizedthroughcyBUYorotherUniversitycontracts.ItemsandservicesfromvendorsthatholdcompetitivelybidcontractswithISU(e.g.of icesupplies,computeritems,scienti icandresearchsupplies,copiers,tentrentals,etc.)shouldbepurchasedoncyBUYorontheUniversitycontractswiththevendorratherthanfromvendorsthatcompetedirectlywiththosecontracts(seehttp://www.purchasing.iastate.edu/contracts/).VendorsthatcompetedirectlywithcyBUYvendorsorUniversitycontractsshouldonlybeusedaftercontactingthePurchasingDepartment(515‐294‐[email protected])forapproval.
3. ThePurchasingCardmaynotbeusedforthefollowingtransactions:
Purchasing Card Program Guide 3 Revised November 2015
4. AllpurchasetransactionsprocessedagainstthePurchasingCardmustbemadebytheindividualtowhomthecardisissued.Thecardistobeusedonlybythenamedcardholderandisnottobeloanedtoanotheremployee,orotherperson.Thecardholderhasfullliabilityforanyimproperchargesthatresultfromallowingotherstousethecard.
5. Attimes,Universitypurchasesmayresultincashorcash‐likeincentives.Thecashand/orincentivesare
thepropertyoftheUniversityandmaynotbeusedforpersonalgain.Examplesofsuchincentivesinclude,butarenotlimitedto:rebates,giftcards,two‐for‐onepurchasesandspendrewards.TheUniversityrecommendsthatcardholdersnotparticipateinthesepromotionaloffers.Itistheresponsibilityofthecardholder’sdepartmenttobeassuredthatanymonetaryorcashincentiverewardreceivedasaresultofanIowaStateUniversitypurchasebecomesthepropertyoftheUniversity.
6. ThePurchasingCardmaybeusedforconferenceregistrationfees.Feesforoptionaleventssuchastours,
golfoutingsandothersimilareventsthatarenotincludedwiththenormalregistrationareconsideredpersonalandarenottobechargedtotheCard.Thesefeesshouldbepaidforpersonallyandsubmittedforreimbursementwhenappropriateandallowable(maximummealrateswouldapply).Theobjectcodeforregistrationexpensesmustbe23200(domestic)or23300(foreign).DuesormembershipsmayalsobepaidwiththeCardprovidingsomebene itisderivedbyISUasaresultofthemembership(seeUniversityPolicyLibrary,policy.iastate.edu/policy/memberships/,forfurtherinformation).Theobjectcodemustbe38200fortheseexpenses.Golf,airlineclubsandsimilarmembershipsarenotallowable.ThepurchaseofmembershipssuchasAmazonPrimeisconsideredarewardprogram(seenumber5above)andnotallowablebecausethesemembershipsarenotlimitedtoISUbusinessonlyandcanbeusedforpersonalpurchases.Journalreprints,classi iedadvertising,andsubscriptionsmaybepaidwiththeCard.
7. TheUniversityhasauthorizedtheuseofthePurchasingCardformeeting,event,andhospitalityexpensesuptothecardholder’sauthorizedsinglepurchaselimit.Existingcardholdersmayrequestacon igurationchangetotheirPurchasingCardbyhavingtheirdepartmentchairordelegatedp‐[email protected].
Hospitalityexpensesareallowedprimarilyforthosefunctionswithanexplicitbusinesspurposewhichincludenon‐employees.UseofUniversityfundsforemployeefunctionsisallowableonlyinaccordancewiththeGeneralRulesforISUFunds,publishedbythecontroller’sdepartmenton4/3/2014(SeeAppendicesSectionI‐GeneralRulesforISUFunds).Thecardholdershallprovidetotheircardvalidatordocumentationregardingthebusinesspurposeofallhospitalitytransactions,includingbeginningandendingdates,location,eventtype,andnamesofparticipants.ThisinformationisrequiredforcompliancewithIRSregulationsandmustbeprovidedinordertocompletetheon‐linereconciliationprocess.
Acceptableusesinclude: Annualstaffretreats Eventsforstudentrecruitment/retention Meals/hospitalityforpositioninterviewees/candidates Meals/hospitalityforvisitingspeakers Meals/hospitalityforothervisitors/meetingattendees EducationaldevelopmentseminarsandconferenceexpenseshostedbyISU Lodgingfornon‐employeesvisitingISU Meetingroomexpenses
Purchasing Card Program Guide 4 Revised November 2015
WhiletheUniversityrecommendsISUCateringforcateringneeds,alistofotherauthorizedcaterers/vendorsforISUdepartmentsandorganizationstoselectfromwhenholdingeventsatISUmaybefoundathttp://www.riskmanagement.iastate.edu/food.Withregardtopurchaseofalcoholicbeverages,pleaserefertoUniversitypolicy.WhenthePurchasingCardisusedformeetingandhospitalityexpenses,thefollowingobjectcodesshouldbeused:
24100 Travel‐Domestic‐Nonemployee24200 Travel‐Foreign‐Nonemployee36100 HospitalityforSeminars/Events/Conferences36200 HospitalityforMeetings‐ISUStaffOnly36300 HospitalityforRecruitment36400 HospitalityforFundraising36500 Alcohol36900 OtherHospitality
Pleasenote:TravelexpenseswillnotbeanacceptableuseofthePurchasingCardandwillcontinuetobetheresponsibilityoftheUniversityemployee,andreimbursablebyprocessingarequestthroughtheemployeereimbursementsystemforassessmentoftaxablemeals.
8. PurchasingCardtransactionsfornon‐restricted(acceptable)commoditiesmaynotexceedthe
cardholder’sauthorizedsinglepurchaselimit,includingalldelivery,shippingand/orhandlingcharges(seeSectionV—Orderingprocess).
9. Purchasesmustbefortheuseandbene itoftheUniversity.NOPERSONALPURCHASESAREALLOWED.
PersonalpurchasesmadewiththePurchasingCardmustbechargedtothecardholder’sU‐Billbythereallocatorusingtheon‐linereconciliationsysteminAccessPlus.
10. Itisthecardholder'sresponsibilitytoprovideallreceiptsanddocumentationtothecardvalidatorto
maintainforthedepartmentforone(1)yearfromthetransactiondateinpaperform,thenforanadditionalnine(9) iscalyearsinthep‐cardattachmentimagingsysteminaccordancewiththeUniversity’sRecordRetentionPolicy.Thecardholdershallprovidedocumentationregardingthebusinesspurposeofalltransactions.Forhospitalitytransactions,thecardholdershalladditionallyprovidetheeventtype,beginningandendingdates,location,andnamesofparticipants.
11. Itisthecardholder'sresponsibilitytoreportalostorstolencardimmediatelyto:
thePurchasingCardProgramAdministratorat515‐294‐4589,and theISUPublicSafetyOf iceat515‐294‐4428.
12. Itisthecardholder'sresponsibilitytorequestexemptionofsalestaxthroughtheproperuseofthe
University'ssalestaxexemptionnumber.13. ThecardreallocatorisresponsibleforensuringthattheproperUniversityaccount(s)andexpenseobject
code(s)arechargedforpurchases.Anyaccountmaybeusedforreallocation,withtheexceptionofCampusOrganizationaccounts(206‐00‐35).
14. Itisthedepartment'sresponsibilitytoattempttoresolveadiscrepancywithavendorwithinten(10)
daysofreceiptofpurchase.Ifaresolutionisnotpossible,thedepartmentmustcontactthePurchasingCardProgramAdministratorwithsupportinginformationwithinthirty(30)daysofthetransactionpostdate.
Purchasing Card Program Guide 5 Revised November 2015
15. ViolatinganyofthesepoliciesmayresultintheimmediateterminationoftheprivilegetousethePurchasingCard.Non‐adherencetoanyoftheproceduresenumeratedintheAgreement,theUserGuide,ortheStatementofPurchasingCardReceiptwillresultinrevocationofindividualcardholderprivilegesandmayresultinrevocationofalldivisionordepartmentalPurchasingCards.
16. FraudulentuseofthePurchasingCardwillresultindisciplinaryactioninaccordancewiththepoliciesof
ISU’sHumanResourceServices. III. How it works ThePurchasingCardProgramsimpli iesthepurchasing/disbursementprocessbyfacilitatingpoint‐of‐saleprocurement.Purchasingresponsibilityisdelegatedtotheorderingdepartment,enablinganauthorizedcardholdertoplaceanorderdirectlywithavendor/supplier.ThePurchasingCardProgramprovidesenhancedcontrolforalltransactionsbyproducingimmediatedecisionsonthree(3)speci icauthorizationcriteriaasexplainedbelow.Whenapurchaseauthorizationisrequestedbyavendor/supplieratthepointofsale,theVISAsystemvalidatesthetransactionagainstpre‐setlimitsestablishedbythepurchasingdepartmentinconjunctionwithdepartmentadministrators.AlltransactionsareapprovedordeclinedbasedonthefollowingPurchasingCardauthorizationcriteria:
Singlepurchaselimit,nottoexceed$4,900. Spendinglimitpermonthlycycle,upto$15,000. Approvedmerchantcommoditycodes.
IV. Applica on process CompletionoftheIowaStateUniversityPurchasingCardProgramonlineapplicationbytheapplicant’sdepartmentp‐cardcoordinator,andattendanceatanorientationsessionarerequiredtoobtainaPurchasingCard.ThecardisavailabletoallfacultyandstaffofIowaStateUniversitywiththeapprovaloftheirrespectivedepartmentchairordirectoranddean,vice‐presidentorprovost.
GraduateassistantsmaybeeligibletohaveaPurchasingCardasauthorizedbythedepartmentchairordirectoranddirectorofpurchasing.Casualhourly(XH)employeesarenoteligibletohaveaPurchasingCard.YourpersonalcredithistorywillinnowaybeaffectedbytheISUPurchasingCard.Monthlystatementswillbepaiddirectlybyelectronicfundstransfer.EachnewPurchasingCardissuedwillbesenttothepurchasingdepartment.Cardholdersandindividualsassignedtocompletetheonlinereconciliationprocessarerequiredtoattendanorientationsession.
Existingcardholderswithouthospitalityrightsontheircardwhowanttousethecardformeeting,event,andhospitalityexpensesmusthavetheirdepartmentchairordelegatedp‐[email protected].
Purchasing Card Program Guide 6 Revised November 2015
V. Ordering process
ThePurchasingCardProgramprovidesanotheroptiontotheexistingpurchasingproceduresregardingtransactionsforgoodsvaluedat$4,900orless(includingalldelivery,shipping,etc.).Nosinglepurchaseistoexceedthecardholder’ssinglepurchaselimit($4,900orless).Makingmultipletransactionstothesamevendoronthesamedatetobypassacard’stransactionlimitisaviolationoftheCardholderAgreementandStatementofReceipt,signedbythecardholder.Anyevidencethatacardholderhasusedtheseorothermeanstoavoidthetransactionlimitmayresultinthelossofpurchasingcardprivileges.Purchasesofrestrictedcommoditiesandpurchasesofmorethan$4,900shouldcontinuetobeprocessedinaccordancewiththeestablishedprocurement/disbursementpoliciesandprocedures.Additionalinformationaboutprocurementproceduresmaybefoundatthepurchasingwebsite,http://www.purchasing.iastate.edu/.PleasebecertaintofollowtheseprocedureswhenusingthePurchasingCard:
IdentifyifthepurchaseisappropriateforaPurchasingCardtransaction.Checkthelistofrestrictedcommodities.
Determineifyourtransactiontotalislessthanyourauthorizedtransactionlimit.Ifnot,the
transactionmustbeprocessedinaccordancewithestablishedpurchasing/disbursementpoliciesandprocedures,andthecardmaynotbeutilized.
Contactthevendor/supplierand:
StatethatyouarefromIowaStateUniversity,andyouwillbemakingaVISApurchase.
E U ! Ifthevendor/supplierrequeststheUniversity'ssalestaxexemptnumber,pleaseprovide
theappropriatenumber: SalesTax: 1‐85000775M FederalExciseTax 42‐70‐0066Y Ifthevendor/supplierrequestsaUniversitysalestaxexemptcerti icate,contactthe
PurchasingDepartmentat515‐294‐1308. Placeorder. Givevendor/supplierthePurchasingCardnumberandexpirationdate,andCard
Veri icationValue(CVV),ifrequested. Givevendor/supplieryourname,thedepartmentname,andcompletedeliveryaddress.
(Pleaseprovidecompleteshippingaddress,includingbuildingname,roomnumber,andstreetaddresstoinsureproperdelivery.)Ifthevendorasksforthestatementorbillingaddress,itistheaddressonyourcardstatement(generallyyourdepartmentadministrativeof ice).Contactthepurchasinghelpdeskat515‐294‐[email protected] icinformation.
Purchasing Card Program Guide 7 Revised November 2015
Makesurethattheappropriatedepartmentalpersonnelareawareofyourpurchase,andthatyouhavefollowedalldepartmentalprocedures,includingUniversityrecordretention/documentationrequirements.
Whenreceivingashipment,itistheresponsibilityofthecardholdertopromptlyinspectthe
shipmentinaccordancewithreceiptandinspectionofpurchasedgoods.Incaseofreturns,thecardholderisresponsibleforcoordinatingthereturndirectlywiththevendor/supplierandforcontactingthePurchasingCardProgramAdministratorwithanyunresolvedissues.
Anitemizedcardreceiptmustberetainedaspartofthepurchasetransaction
documentation,asnotedinSectionVI. VI. Proof of purchase documenta on ThePurchasingCardProgramfacilitatespoint‐of‐salepurchases,givingauthorizedcardholderstheabilitytopurchasespeci icgoodsdirectlyfromavendor/supplier.ThePurchasingCardwilleliminatethetimeandeffortspentonprocessingrequisitionsandotherinternalforms, ilingofpurchaseordercopies,distributionandthe ilingofmultiplepaymentvouchers.Withthisauthoritycomestheresponsibilityformaintainingadequatedocumentationatthesourceofthetransaction(withinthecardholder’sdepartment).Itistheresponsibilityofeachdepartmentand/orunittoretainitemizedreceiptsforpurchasingcardtransactionsinaccordancewiththeUniversity'sRecordsRetentionPolicy.OriginaldocumentationMUSTbemaintainedatitssourceandMUSTsupportanauthorized(acceptable)businesspurposeforalltransactionsmadewiththePurchasingCard.Forhospitalitytransactions,thecardholdershalladditionallyprovidetheeventtype,beginningandendingdates,location,andnamesofparticipants.Documentationistobemaintainedforten(10)years(seeSectionII, ).Effective3/1/2014,PurchasingCardreceiptsmustbeuploadedtotheassociatedtransactionintheAccessPlusp‐cardsystem.Supportingdocumentationmightincludethefollowing:
Itemizedcashierreceiptorvendor/supplierinvoice,showingthechargeshavebeenpaidbyusingthecard.
Copyofanitemizedordercon irmationorapplicationwhenavailable. Packingslip(forgoodsreceived). Copyofregistrationform. Certi icateoflostreceipt(seeAppendicesSectionVII‐Forms).
Transactionswillbesubjecttoauditbythepurchasingdepartment,thecontroller’sdepartment,internalauditandStateofIowaauditors.
Purchasing Card Program Guide 8 Revised November 2015
VII. Transac on reconcilia on Theon‐linereconciliationsystemreceivesdailyelectronictransmissionsfromthecreditcardcompanyshowingpostedcardtransactionsbycardholder.
Thepersondesignatedtovalidatetheaccuracyandreceiptoftheitemsassociatedwiththatcard(thevalidator)willbenoti iedbye‐mailthattheyhaveoneormoretransactionstoreview.
Oncevalidated,thetransactionisroutedelectronicallytosomeonewhocanassignorreallocatethecorrectaccountnumbersandobjectcodesplits(wherethisisnotthesamepersonasthevalidator).
Thetransactionwillthenbeforwardedelectronicallytoapersondesignatedtoserveastheapprover,whowillapproveorrejectthetransaction.
Onceapproved,thetransactionismovedintotheaccountingsystemandappearintheKualiFinancialSystem(KFS).
Keepinmindthatthevendorispaidonthepostdate,andthemonthlystatementwillbepaidregardlessofincorrecttotalsordisputedcharges.Donotignorethetransaction(seeSectionIX‐Transactiondiscrepancies,disputes,andfraud).Credittransactionsfordisputedchargeswillbeprocessedinthesamemanneraschargesandre lectedonsubsequentstatements.Remindermessageswillbesentbye‐mailtobothcardholdersandsystemuserswhentransactionshavenotbeencompletedintheon‐linereconciliationsystemwithin30daysofthepostdate.CardholdersmayreviewtheirtransactionsviatheP‐card‐CardholdersystemundertheuBusinesstabinAccessPlus,orcontacttheircardvalidator/reallocatorformoreinformationaboutthestatusofanyoverduetransactions.
VIII. Segrega on of du es Anappropriatesegregationofdutiesrequiresthatatleasttwopeoplearesubstantiallyinvolvedinatransaction.Substantialinvolvementmeansthatapersonotherthanthecardholderisreviewingcardtransactionsforappropriateness,allowability,fundingsource,andbusinesspurpose.Inthepurchasingcardsystem,thissegregationofdutiesmaybeaccomplishedinoneofthefollowingways:
Haveapersonotherthanthecardholdervalidateandreallocatethetransaction. Havetheapproverreviewallp‐cardreceiptsorotherproof‐of‐purchasedocumentation. Utilizeanddocumentpre‐authorizationforp‐cardtransactions.
Thepurchasingdepartmentrecommendsthatdepartmentsadoptthefollowingproceduresaspartoftheirp‐cardprocess:
First,thattheapproverseethereceiptorotherproof‐of‐purchasedocumentationforallpurchasesthattheyapprove.
Second,thattheoriginalreceiptforallp‐cardtransactionsforadepartmentbekeptinacentrallocation.Thereceiptsshouldnotbekeptinthecardholder'sdesk,forexample,butinalocationaccessibletoapprovers,auditors,andotherstoreview.
Thepurchasingdepartmentwillconductauditsofthedepartmentalp‐cardprocess,includingappropriatesegregationofduties,retentionoforiginalreceiptsinacentrallocation,andtheapprovalprocesswithregardtoreceipts.
Purchasing Card Program Guide 9 Revised November 2015
IX. Transac on discrepancies, disputes, and fraud UnauthorizedtransactionstounknownvendorsshouldbereportedtothePurchasingCardAdministratorimmediately.Forunrecognizedorincorrecttransactions,thedepartmentshould irstseekresolutionwiththemerchant.Shouldthisproveunsuccessful,thedepartmentshallcontactthePurchasingCardProgramAdministratorwithsupportinginformation.AlldiscrepanciesshallbecommunicatedtothePurchasingCardProgramAdministratorwithin30daysofthepostdate.Yourrequestwillbeinvestigated,and,ifresolutioncannotbeachievedwiththemerchant,sentdirectlytoUSBankforreview.Oncethechargeisdisputed,USBankwillsuspendthechargeandrequestdocumentationfromthemerchant.Ifthemerchantfailstoprovidesuitabledocumentationwithinforty‐ ive(45)days,thedisputedamountwillbecreditedonthenextstatement.Transactionssixty(60)dayspastthestatementdatecannotbedisputedwithUSBankandwillbetheresponsibilityofthecardholder’sdepartment.
X. Repor ng a lost or stolen card IfaPurchasingCardislostorstolen,thecardholder P C A at515‐294‐4589.ItisalsotheresponsibilityofthecardholdertoreportthelossofaPurchasingCardimmediatelytoISU’sPublicSafetyOf iceat515‐294‐4428.Thecardholder’sdepartmenthasfullliabilityforanychargestothecard,priortothetimeitisreportedlostorstolen.ShouldyouneedemergencyassistancefromVISAthatUSBankisunabletoprovide,VISAmaybecontactedat1‐800‐847‐2911.
XI. Employee transfer or termina on TheemployeeoremployingdepartmentmustimmediatelynotifythePurchasingCardProgramAdministratoruponlearningofcardholderterminationsortransfers.Advisethedatethatcardprivilegesneedtobeterminated.PurchasingwillimmediatelynotifyUSBank,therebyprotectingtheUniversitythroughVisa’sLiabilityWaiverProgram.FailuretonotifyUSBankwithintwo(2)daysoflearningofanemploymentstatuschangevoidsthisprotection.TheemployingdepartmentisresponsiblefordestroyinganddiscardingthePurchasingCardoncethecardholderleavestheUniversity/department.DoNOTsendactivePurchasingCardsthroughcampusmail.Additionally,shouldtheemploymentstatusofavalidator,reallocator,approveroranyoftheirproxieschange,theemployingdepartmentshallnotifythePurchasingCardProgramAdministratorimmediately.Theelectronicreconciliationsystemoperateswithcardholderspeci icdatabases,whichincludesthenamesande‐mailaddressesofeachoftheabove.AnyemploymentstatuschangesnotcommunicatedtothePurchasingCardProgramAdministratorwillcausedelaysanderrorsinthereconciliationsystem.
Purchasing Card Program Guide 10 Revised November 2015
Appendices I. General Rules for ISU Funds FromtheController'sDepartment,Allowability&Appropriateness:HowtoKnowifExpensesAreAllowableUpdated4/3/2014http://www.controller.iastate.edu/accounting/allowability.pdfADEQUATEDOCUMENTATION–Itisnotpossibletodeterminetheallowabilityandappropriatenessofanexpenseunlessadequatedocumentationexists.Adequatedocumentationincludesaninvoiceorreceiptthatidenti iesWHATwaspurchased,WHEREitwaspurchased,WHOpurchasedit,andWHENitwaspurchased.Ifallofthisinformationisnotcontainedonthereceiptorinvoiceitself,itneedstobeaddedtotheexplanationontheelectronicdocumentorvoucher,orwrittenonthereceipt/invoice/intramural.The ifth“W,”orWHYitwaspurchased,mustbeaddedtotheBusinessPurposesectionoftheelectronicdocumentorintramural.Thedepartmentand/orcollegeareultimatelyresponsiblefordetermininganddocumentingtheallowabilityandappropriatenessofexpenditures.Thedepartmentand/orcollegeareinthepositiontodeterminethebestwaytousetheirfunds.Judgmentonreasonablenessofallexpenditures,andespeciallyinthecaseofhospitality,istheresponsibilityofthecollegeand/ordepartment.Whencashorotherpropertyisgivenouttoresearchparticipants,aResearchParticipantReceiptForm(RPRF)shouldbeattachedinlieuofaninvoice.Whencashorotherpropertyisgivenoutaspartofadrawing,doorprize,orsomeotherpurposeotherthanresearch,aPropertyReceiptFormshouldbeattachedinlieuofaninvoice.APropertyReceiptFormisnotrequiredfor:
lowers(ormemorial/giftinlieuof lowers)giveninconnectionwithanillness,hospitalization,ordeathofanemployeeortheirimmediatefamilymembers;or
giftstodonorsorinternationalvisitors;ormilestonerecognition,retirementorgoing‐awaygifts;ortokennon‐cashitemsortokenresearchincentives(havingavalueof$20.00orless).
UNALLOWABLEEXPENDITURES‐Certaintypesofexpendituresarenotallowablefromanyfundingsource.Examplesofunallowableexpendituresinclude:•Artworkforindividualof icesisconsideredapersonalexpenseandisnotallowablefromanyfundingsource.However,artworkinpublicareasisallowable.•Flowersforbirthdays,holidays,weddings,weddinganniversaries,orbabyshowersarenotallowablefromanyfundingsource.Seethesectionbelowforconditionallyallowablepurchasesof lowers.•Giftsinlieuofpaymentforservicesarenotallowablefromanyfundingsource.Seethesectionbelowforconditionallyallowabletokennon‐cashitems.•Giftstoemployeesforbirthdays,holidays,weddings,weddinganniversaries,orbabyshowersarenotallowablefromanyfundingsource.•Homeinternetreimbursementisnotallowablefromanyfundingsource.Inaddition,cellmodemsprocuredfromanISUcontractedcellularprovidershouldnotbeusedforpersonaluseinplaceofhomeinternetaccess.•Homeof iceexpensesareunallowablefromanyfundingsourceifISUprovidesof icespaceinanotherlocation.•Parking ines,parkingpermits,library ines,latefees,and inancechargesarethepersonalresponsibilityofthepersonwhoincursthem.Theyarenotallowablefromanyfundingsource.
Purchasing Card Program Guide 11 Revised November 2015
CONDITIONALLYALLOWABLEEXPENDITURES‐Sometypesofexpendituresareonlyallowablefromcertainfundingsources,orwhentheexpendituresmeetotherconditions:•Alcoholicbeveragesusuallyareonlyallowablefromagency(206)funds,orfromgeneralsupportFoundation(497)fundsinappropriatehostingsituations.IfonlyISUemployeesareattending,only206fundsmaybeused.Otherfundingsourcesmightbeallowableiftheuseisforcooking,research,coursestudy,orcateringprovidedbyanISUdepartmentthatroutinelyprovidescateringservices.ApprovalsanduseofalcoholforeventsinUniversitybuildingsandonUniversitygroundsmustcomplywiththeUniversityPolicyLibrary‐Alcohol,Drugs,andIntoxicants.IfanISUdepartmentputsonaconference,andthefeespaidbytheconferenceparticipantsincludeaneventthatservesalcohol,thenon‐sponsoredfundaccountthatreceivedtheregistrationfeesmayalsobeusedtopurchasethealcoholfortheconference.Itshouldbenotedthatconferencesfundedwithsponsoredfundsdonotallowthepurchaseofalcohol,evenwhenfundedfromparticipantfees.•Coffee,coffeepots,refrigerators,microwaveovens,etc.purchasedexclusivelyforemployeeuseareallowablewhenchargedtoagency(206)fundsorFoundation(497)funds.ThisdoesnotprecludeaunitfrominitiallychargingcoffeetoUniversityfunds,exceptsponsoredprogramsfundingsources,andthencollectingemployeefundstoreimbursetheUniversityaccount.•Con lictofInterestpaymentsmustbepre‐approvedbyPurchasing.•Doorprizes,otherthantokennon‐cashitemstoemployeesanddescribedbelow,thataregivenoutduringanemployeemoraleeventareallowableonlyfromagency(206)funds.Doorprizesorraf leprizesgiventostudentsornon‐employeesatISUeventsareallowableonallfundsexceptsponsoredprogramfunds.Ifthevalueoftheprizeismorethan$20.00,aPropertyReceiptFormmustbesignedbytherecipientandkeptwiththeexpendituredocumentation.•Flowersusedforpublicfunctions,suchasretirementpartiesandconvocations,areallowablefromsourcesotherthansponsoredprogramsfunding.Flowerspurchasedinconnectionwiththeillnessorhospitalization(includingmaternity)ofemployeesareallowableonlyfromagency(206)fundsorgeneralsupportFoundation(497)funds.Flowerspurchasedinconnectionwiththedeathofemployees,theirimmediatefamilymembers,orkeyconstituents(e.g.,donors)areallowableonlyfromagency(206)fundsorgeneralsupportFoundation(497)funds.Amemorialorcashgiftmaybemadeinlieuof lowers,aslongastheamountdoesnotexceedwhattypicallywouldhavebeenspentfor lowers.•Giftsforrecognitionofemployeeachievements(suchasthosepresentedthroughformalawardsprograms),retirements,orgoing‐awayfunctionsareallowable,exceptonsponsoredprogramsfunding.However,thecostofthegiftmustbereasonable.Reasonablenessofcostswouldvarydependingonsuchissuesaspositionlevel,howmanypeopletheemployeeinteractedwith,aswellasthelengthofservicetotheinstitution.Giftstointernationalvisitors,especiallythosefromcertaincultures,arefrequentlyanexpectedcourtesyandareconsideredanappropriateexpenditure,exceptonsponsoredprogramsfunding.•Personaluseitemsarenotreimbursableexceptwhenallowedfromagency(206)funds.Examplesofpersonaluseitemsincludeclothingsuitableforstreetwear,parkingpermits,andbuspassesforcommuting.However,shirtsthatcontainthedepartment’slogowornasauniform,foraspeci icevent,orforprogramidentitypurposeswouldbeallowablefromsourcesotherthansponsoredprogramsfunding.•Printingandphotocopyingdoneoff‐campusareonlyallowablewhileintravelstatus,forafter‐hoursemergencies,orforprintingthatcannotbeperformedbyon‐campussources.•Tokennon‐cashitemshavingavalueof$20.00orlessgiventoemployeesorstudents,suchasduringanemployeemoraleorappreciationevent,areallowableexceptonsponsoredprogramsfunding.UNALLOWABLEPROCUREMENTMETHODS–PleaseseePurchasing’swebsiteforRestrictionsonDelegatedAuthority.Whiletheexpenditureandthefundingsourcemaybeallowable,formostpurchasesyoumusteithersubmitaWebRequisitionorusetheP‐card,asemployeereimbursementsandpaymentswithoutapurchaseorderarenotallowed.•Cellphones,cordlessphones,IPphones,andtelephonesmustcomplywithuniversitystandards.CellulardevicesmayonlybepurchasediftheserviceisprovidedthroughaUniversity‐ownedcontractplan.Cellulardevicesassociatedwithapersonally‐ownedserviceplancannotbepurchasedorreimbursedwithanyfunding
Purchasing Card Program Guide 12 Revised November 2015
source.However,theemployeemaybeeligibleforreimbursementofuseofthecellulardevicethroughtheCommunicationTechnologyAllowanceprogram(seebelow).•Chemicals,controlledsubstances,hazardousmaterials,andradioactivematerialsrequireaWebRequisitiontoallowtrackingofmaterials.•Computersandlaptopsmustmeetcompatibilitystandards.PleasecontactPurchasingforinformationaboutusingcyBUYorTechCyte.•FurnitureandFurnishingsmustmeetstandardizedproductspeci ications.PleasecontactPurchasingabouttheircompetitively‐bidcontracts.•Leases,rentalagreements,oranyothersignedagreementsmustbepre‐approvedbyPurchasing.•Materialscosting$500.00ormorecannotbeprocessedasnon‐travelemployeereimbursements,andmaterialscosting$100.00ormorecannotbeprocessedonadisbursementvoucher(non‐PO).ProcurementalternativesincludepaymentstovendorsusingaP‐card,WebRequisition,orusingauniversityservicecenter.•Professionalservicesexpectedtobe$2,000.00ormore(includingexpenses)fortheyearrequirebothaProfessionalServicesContractualAgreementandaWebRequisition.•Routineservicescosting$100.00ormorecannotbeprocessedonadisbursementvoucher(non‐PO),andrequireusingeitheraP‐cardoraWebRequisitioninstead.SELECTEXPENDITURECATEGORIES‐Thefollowingexpenditurescategorieshaveinherentlybeensubjecttomorescrutiny,bothinternallyandwiththepublic.•CellPhonesTheUniversityissuedaCommunicationTechnologyAllowancePolicyandReimbursementProcedures,effectiveJuly1,2009–http://www.controller.iastate.edu/controller/cta.htm.Thepolicyandproceduresoffertwoallowablemethodsforprovidingcellularphoneservicestoeligibleemployees:
•ThroughISUcontractedcellularproviders–ThismethodisforemployeesthatusetheircellulardevicesforprimarilyUniversitybusinessandwhocarryapersonalcellulardeviceforpersonalcallsordonotnecessitatetheuseofacellulardeviceforpersonalcalls.
•ThroughtheuseofaCommunicationTechnologyAllowance(CTA)‐Thismethodisusedprimarilybyemployeeswhodonotwanttocarrytwocellulardevicesandrequiretheuseofacellulardeviceforpersonalcalls.Thismethoddoesnotallowforreimbursementoftheemployee’spersonally‐ownedcellulardevices.TheCTAispaidtotheemployeeasanon‐travelreimbursementthroughtheEmployeeReimbursementSystem.AcopyoftheapprovedCTAformshouldbeimportedasareceiptwhensubmittingthenon‐travelreimbursement.Acopyofthecellphonebillisnotrequiredtobeattachedtothereimbursementrequest.
ForemployeeswhodonotmeetCommunicationTechnologyAllowancePolicyeligibilityrequirements,reimbursementsmaybemadeforinfrequentnecessarybusinesscallswherethecallsareidenti iableandjusti iedinwritingANDthecallsresultinadditionalcoststotheemployee’spersonalplan,suchasroamingcharges,minuteoveragechargesortemporaryinternationalaccess.NeitherCTAsnoruniversity‐ownedcommunicationtechnologyplansmaybechargedtofederallysponsoredprojects,exceptwherethecostsmeetthede initionof“unlikecircumstances”andareallowableinaccordancewithOMBCircularA‐21andtheuniversity’sSponsoredProgramsCostingPolicy.Theremaybespeci icrestrictionsontheuseofothernon‐federalsponsoredfundstopayfortechnologycosts.•DonationsandContributionsDonationsandcontributionsareallowablefromagency(206)funds.However,adonationorcontributionmaybeallowablefromothernon‐sponsoredfundingsourcesifitcoversaspeci icidenti iablecost.IfISUissponsoringaconferencewheretheywillbelistedintheconferenceliteratureasasponsoroftheevent,thechargeshouldbedescribedasadvertising.
Purchasing Card Program Guide 13 Revised November 2015
•EmployeebusinessfunctionsThegreatestuncertaintyregardingallowabilityoftenoccursforeventsinwhichonlyISUemployeesarepresent.Theassociatedcostsmustrepresentalegitimatebusinessexpensewithawork‐relatedpurpose.ThefollowingprovideexamplesofmeetingsattendedonlybyISUemployees.Foodandbeveragesforrecurringfunctionswhereparticipantsareallfromthesamedepartmentshouldbekepttoaminimum.
•Amealmaybeservedwhenthefunctionispre‐plannedandanumberofpeopleareinvolved.Havingfoodservedoncampusvs.diningoutisgenerallyviewedasmorebusinesslikeandlesssocial.Examples:
•Ifthemostconvenienttimeagroupofpeoplecanscheduleawork‐relatedmeetingisoverthenoonhour,providinglunchoncampusisgenerallyappropriate.Recurringcommitteemeetingsinvolvingemployeesfrommanydepartmentswouldfallintothiscategory.
•Iftwoemployeesmeetatarestaurantdowntown,evenifbusinessisdiscussed,thisisgenerallynotappropriate,sincetheindividualswouldnormallyhavelunch.Undersomecircumstanceswhereitistheonlyconvenienttime,agency(206)fundsorgeneralsupportFoundation(497)fundsmaybeused.ForFoundation(497)funds,thebusinesspurposeofthemeetingmustbedocumented,andnoalcoholispermitted.
•Therestaurantusedmustbecommensuratewiththebusinesspurposeofthemeetingandexpensesmustbereasonable.Upscalerestaurantsarenormallyonlyappropriatewhenoutsidersareinattendanceandmakingapositiveimpressionontheguestispartofthebusinesspurpose.
•Employeeparties/picnicsOthergatherings,suchasholidaypartiesoremployeepicnics,shouldonlybeexpensedfromagency(206)orgeneralsupportFoundation(497)funds,andthebusinesspurposemustbeproperlydocumented.Thebusinesspurposeforthesetypesofeventsgenerallyisemployeemoraleorappreciationwhichisnotthesamethingasmilestonerecognition,whichspotlightsaspeci icachievementofanindividualorunit.Forexample,anannualemployeepicnicwouldbeemployeeappreciation,butapicnictocommemoratethe25thanniversaryofthedepartmentwouldbeconsideredmilestonerecognition.•FundraisingSincebuildingrelationshipswithalumniandfundraisingareintegralpartsofUniversityadministration,costsforthesetypesofeventscanfrequentlybepaidfromanysourceexceptsponsoredprogramsfunding.However,anyeventwhereticketsaresoldandtheproceedsusedasfundraisingshouldbecoordinatedwiththeFoundationsothatappropriatetaxreportingtothedonorscanoccur.Withoutthepropergiftreceipt,noportionofthepaymentcouldbeconsideredtaxdeductiblebythedonor.•HospitalitydocumentationHospitalityexpenseswillbeprocessedprovidedthedocumentationincludestheWHO(specifynamesandbusinessrelationshipifnotclear),WHAT,WHEN,WHEREandWHYoftheevent.Itistheresponsibilityofthecollegeand/ordepartmenttoexplicitlystatethebusinesspurposeonallexpendituretransactionsauthorizingpaymentofcosts,especiallyforemployee‐relatedevents.•MembershipsInstitutionalmembershipsthatareofuniversity‐widenature,suchastheAmericanCouncilonEducation,theNationalAssociationofStateUniversityLandGrantColleges,andtheNorthCentralAccreditingAssociation,maybefundedcentrally.Decisionsandfundingofotherassociationmembershipsshouldbemadeatthecollegeanddepartmentallevel.Atthediscretionofthedepartment,personalmembershipsinprofessionalorganizationsmaybepaidifjournalsorotherprofessionalmaterialsrelatingtotheunit’sbusinesspurposeareincludedinthecostofmembership.Membershipsofapurelysocialnaturearenotallowable.Itistheresponsibilityofthecollegeand/ordepartmenttoassurethattheauthorizationorexpenseconformstouniversitypolicyaswellaswithanyothersponsoringagencypolicies.
Purchasing Card Program Guide 14 Revised November 2015
II. Expenditures Involving Founda on Funds FromtheController'sDepartment,Allowability&Appropriateness:HowtoKnowifExpensesAreAllowableUpdated4/3/2014http://www.controller.iastate.edu/accounting/allowability.pdfEffectiveOctober1,2002,UniversitydepartmentswererequiredtouseaUniversityaccount(497funds)toexpendFoundationfunds.Exceptionstothisprocessare:
ScholarshipsareprocessedthroughtheOf iceofStudentFinancialAid,utilizingtheFoundationaccountnumberontheStudentAidAwardForm.
CapitalbuildingprojectsaremanagedandbilledthroughtheFacilitiesPlanningandManagement
department.Expensesrelatingtodonorrelationsandfundraisingwherecon identialityisanissuemaybepaiddirectly
bytheISUFoundation.
•MilestonerecognitionRetirement,goingawayorothermilestonerecognitionfunctionsaregenerallyconsideredtobeappropriatefromsourcesotherthansponsoredprogramsfundingaslongasthecostsarereasonable.Alcoholisallowablefrom206accounts.Ifnon‐ISUemployeesalsoareattending,generalsupport497accountscanbeused.Theseeventscanbedistinguishedfromapurelysocialfunctionsincetheprimarypurposeoftheeventistorecognizeanemployee(s)forextendedservicetoISUorforspeci icachievementsuchasreceivinganaward.Reasonablenessofcostswouldvarydependingonissuessuchashowmanypeoplethehonoreeinteractedwithaswellastheirlengthofservicetotheinstitution.Inaddition,thenatureoftheexpenseshouldbeconsidered.Cakeatareceptionwouldbeanappropriatecost,butgreensfeesforagolfoutinghonoringaretireewouldnot.Recognitionofpersonalevents,suchasemployeebirthdays,weddings,weddinganniversaries,orbabyshowers,isnotanappropriateexpensefromanyfundingsource.Ifaunitfeelsthisisanimportantevent,thegrouporadministratorinvolvedshouldpaytheexpensespersonally,withoutexpectationofreimbursementfromISU.Recognitionofpersonaleventsfordonorsorotherexternalconstituentsmay,inuniquesituations,suchasthebirthdayofamajordonor,beanappropriateexpensefromagency(206)orgeneralsupportFoundation(497)funds.•Spousal/Signi icantOtherattendanceMealexpensesforanemployee’sspouseorsigni icantotherusuallyarenotallowable.Seeexceptionsbelow.Expensesofthisnatureshouldnotbechargedtosponsoredprogramsfunding.Ifthespouse/signi icantotherofaninterviewcandidateisinattendanceatanISUsponsoredmeal,thentheexpensesforISUemployees’spouses/signi icantotherswouldalsobeallowable.Also,spousal/signi icantotherattendanceatstaffrecognitionfunctionsisgenerallyallowable,asisattendanceatreceptionsforcampusvisitorsorfundraisingeventsifsucheventsaretypicallyattendedbyothersfromoutsideISU.Additionally,spousal/signi icantotherattendanceatameetingwithadonorcoupleisgenerallyallowable.Thetravelandassociatedmealexpensesofspouses/signi icantothers/otherfamilymemberswouldnotbeanallowableexpenseunlessabusinesspurposeexistsand/orspeci icadministrativeapprovalhasbeenreceivedtoincludethoseindividuals.
Purchasing Card Program Guide 15 Revised November 2015
Allotherexpensesaretobeprocessedusinga497account.ExpensessubmitteddirectlytotheFoundationwillbereturnedtothedepartmentforprocessingbytheUniversityunlesstheyarecon identialitemsrelatedtofundraising.TheFoundationautomaticallyreimbursestheUniversitymonthlyforallexpendituresandchargestheappropriateFoundationaccount.ISUprocurementpoliciesandISUbusinesspurposerequirementsapplytothe497accounts.Hospitalityexpensesrelatedtoalumnievents,employeerecruitment,andexternalrelationsexpensesmaybepaidfromthe497accountsevenifalcoholisserved.Generalpurpose497accountsmaynotbeusedtopurchasealcoholwhenonlyISUemployeesareattending.Expendituresmustcomplywithrestrictions,ifany,placedonthefundsbythedonor.Asalways,adequatedocumentationmustbeprovidedandtheauthorizingadministratormustbepreparedtojustifytheappropriatenessandreasonablenessoftheexpenditure.TheIowaStateUniversityFoundationisa501(c)(3)organizationestablishedsolelytobene itIowaStateUniversity.GiftstotheFoundationaretobeusedtosupportthemissionoftheUniversity.Therefore,expendituresfromFoundationaccountsmustrelatetoaUniversityactivityorfunction,ormustsupporttheUniversity’sadvancement,andareexpectedtobecommensuratewiththeprobablebene ittotheUniversity.Foundationfundsarenotintendedforthepersonalbene itofUniversityemployeesandareexpectedtobeusedprudently.All497expendituresarepublicrecords.Compliancewithdonorintentistheprimarytestofallowability.Thedeterminationoflegitimatebusinesspurpose,orappropriateness,istheresponsibilityoftheDepartmentChair,DirectororDean.
III. Vending Account Usage
Date:June12,2003To:Controller'sInformationNetworkFrom:StephanieFox,AssociateControllerAsmanyofyouknow,thevendingaccountsinthesection/projectsof206‐13‐35arebeingclosedandthebalancestransferredtonew206accountsthatwillbeusedsolelyforyourdepartment.TheadvantageofhavingindividualaccountsisthateachaccountcanbecodedtotheproperdepartmentwhichwillenableyoutoincludeitonreportscreatedinHyperionandalsotouseitinprocessesthatinvolveelectronicrouting.Thesewerenotoptionsundertheoldnumberingscheme.Theothermajorchangeassociatedwiththeconversionisthat,effectivewithJulybusiness,youwillmakepaymentsagainstyourvendingaccountsusingthesameformsandprocessesasareusedforyourotheruniversityfundsinsteadofusingtheCampusOrganizationsVoucher.PaymentswillbeprocessedthroughtheAccountingDepartmentin3606ASBinsteadofCampusOrganizationsAccountingintheMemorialUnion.Thebasicpoliciesregardingallowabilityonvendingaccountswillnotchange.Speci ically:VendingaccountscanbeusedforpurposesdeemedappropriatebyyourDepartmentChairorDirector.SincethesecontinuetobeAgencyfundsinthe206series,suchthingsas lowers,giftsandalcoholwillbeconsideredallowableifdeemedappropriatebythedepartment.2.WhileP‐cardsmaybeusedforpurchasesonthevendingaccounts,thestandardP‐cardrulesprohibitingpurchaseofsomegoodsandservicesstillapply.Theserulescanbefoundathttp://www.purchasing.iastate.edu/card/usage.html.Forexample,giftsmaybepurchasedwithvendingfundsbutgiftscannotnotbepurchasedwithaP‐card.VendingaccountpurchasesofgiftsandotheritemsnotallowableonP‐cardshouldbedoneonanISUVoucher.3. Several have asked whether the 2% administrative fee will apply to vending accounts. The fee will be taken
Purchasing Card Program Guide 16 Revised November 2015
IV. Iowa Gi Law In1992thelegislaturepassedtheIowaPublicOf icialsActwhichamendedthegiftlawinIowaCodechapter68B.Thegiftlawwasfurtheramendedin1993.Thishandbooksetsforthportionsofthegiftlawasamendedin1993andanswerssomecommonquestionsthatmayariseininterpretingthegiftlaw.TheIowaPublicOf icialsActasamendedalsocontainsmanyotherprovisionsoflawrestrictingtheactivitiesofpublicof icialsandemployeesandlobbyists.Thehandbookmaybefoundathttp://www.purchasing.iastate.edu/policy/giftlaw.html.FromISUPolicyLibrary—GratuitiesandGifts,Procurement(http://policy.iastate.edu/policy/gratuities/):IntroductionIn1992,theIowalegislaturepassedtheIowaPublicOf icialsAct,amendingthegiftlawinIowaCodechapter68B.Thisactwasfurtheramendedin1993.
PolicyStatementEmployeesoftheuniversityandtheirimmediatefamilymembersshallnot,directlyorindirectly,solicit,accept,orreceivefromanyone"donor,"agiftasde ined.Agiftmeansarenderingofmoney,property,services,discount,loanforgiveness,paymentofindebtedness,oranythingelseofvalueinreturnforwhichlegalconsiderationofequalorgreatervalueisnotgivenorreceived.Employeesmayacceptitemsavailablefreeofchargetomembersofthegeneralpublicandnon‐monetaryandfooditemsworthnomorethanthreedollars.A"donor"includesanyonewhocontractswiththeuniversityorisseekingtocontractwithit.Thisincludespersonsinvolvedinsales,leases,purchases,orothercontracts.FromISUPolicyLibrary‐Gifts(http://policy.iastate.edu/policy/gifts/):IntroductionThispolicyisinaccordancewithcon lictinterestofpublicof icersandemployeesfromChapter68B,CodeofIowa.
PolicyStatementEmployeesoftheUniversityandtheimmediatefamilymembersshallnot,directlyorindirectly,solicit,accept,orreceivefromanyonedonorinanyone‐calendarday,agiftasde inedbelow.
EmployeesoftheUniversityandimmediatefamilymembersofeachshallnot,directlyorindirectly,offerormakeagiftasde inedbelowtoanof icial,employee,localof icial,localemployee,memberoftheGeneralAssembly,candidate,orlegislativeemployeeinanyonecalendarday.
fromthevendingfundsbeforetheyaredistributedtoyourdepartment.Youwillnotseeachargeforadministrativefeeonyouraccounts.Manyofyounoticedthattherehasn'tbeenadistributionofvendingfundsforseveralmonths.Wearecurrentlyworkingwiththenewvendingcontractortogettheinformationneededtomakethedistribution.Youwillreceiveallfundsdueassoonasthisproblemcanberesolved.Yourpatiencewiththissituationisappreciated.Pleasecontactmeifyouhaveanyquestionsonthepoliciesrelatingtotheuseofvendingfunds.Foradditionalinformationonthenewaccountnumbers,contactLisaShoemakerintheControllersDepartmentat515‐294‐5331.
Purchasing Card Program Guide 17 Revised November 2015
GiftsDe inedAgiftisarenderingofmoney,property,services,discount,loanforgiveness,paymentofindebtedness,oranythingelseofvalueinreturnforwhichlegalconsiderationofequalorgreatervalueisnotgivenandreceived,ifthedonorisinanyofthefollowingcategories:
DonorisdoingorseekingtodobusinessofanykindwiththeBoardofRegents,StateofIowaoraninstitutionitgoverns.
DonorisengagedinactivitiesthatareregulatedorcontrolledbytheBoardofRegents,StateofIowaoraninstitutionitgoverns.
Donorhasinterestthatmaybesubstantiallyandmateriallyaffected,inamannerdistinguishablefromthepublicgenerally,bytheperformanceornonperformanceoftheof icialdutyoftheBoardoranyoftheBoard'semployees.
DonorisalobbyistwithrespecttomatterswithinthejurisdictionoftheStateBoardofRegents.Thede initionof"gift"inChapter68BoftheIowaCodeiswrittenintermsofthegovernmentof icialoremployeesastherecipientofagift.Thestatutealsoprohibitsgovernmentof icialsoremployeesfrommakinggifttoof icialsoremployeesofotherstateagencies,inthecircumstancesdescribedabove.Insuchcases,theemployeeisthedonorandtheotherstateof icialoremployeeisthedonee.
Giftsarenot:
Campaigncontributions. Informationmaterialrelevanttoapublicservant'sof icialfunctionsasanemployeeoftheUniversity.
Examplesofsuchmaterialarebooks,pamphlets,reports,documents,orperiodicals. Registrationfeesortuitionnotincludingtravel,atwhichtheemployeereceivesinformationrelevanttothe
employees'of icialfunction. Anythingreceivedformapersonrelatedwithinthefourthdegreebykinshipormarriage,unlessthedonor
isactingasanagentorintermediaryforanotherpersonnotsorelated. Aninheritance. Anythingavailabletoordistributedtothepublicgenerallywithoutregardtoof icialstatusoftherecipient. Actualexpensesforfood,beverages,travel,andlodgingforameeting,whichisgiveninreturnfor
participationinapanelorspeakingengagementatthemeetingwhentheexpensesrelatedirectlytothedayordaysonwhichthedoneehasparticipationorpresentationresponsibilities.
Plaquesoritemsofnegligibleresalevaluegivenasrecognitionofpublicservice. Non‐monetaryitemswithavalueoflessthanthreedollarsthatarereceivedfromanyonedonorduring
onecalendarday. Itemsorservicessolicitedorgiventoastate,national,orregionalorganizationinwhichtheUniversityisa
member. Itemsorservicesthatarepartofaconferenceorsimilarmeetingandsponsoredbyastate,regional,or
nationalorganizationofwhichtheUniversityisamember.
Purchasing Card Program Guide 18 Revised November 2015
V. Communica on Technology Allowance FromISUPolicyLibrary‐CommunicationTechnology(http://policy.iastate.edu/policy/communicationtech):IntroductionTheuniversityrecognizesthattheperformanceofcertainjobresponsibilitiesmayrequiretheprovisionofadditionalcommunicationtechnologydevicesorservicesasdeterminedbytheheadoftheemployingunitandinaccordancewithuniversityeligibilityrequirements.Thepurposeofthispolicyistoestablishlimitationsandparametersforfundingcommunicationtechnologydevicesandservices.Thispolicyisalsointendedtopreserveuniversityresourcesandpreventmisuseoffunds.
Communicationtechnologyservicesshallbede inedas:
cellularphonevoice/textmessagingservice, cellularphoneISP(InternetServiceProvider)dataserviceassociatedwithdevicessuchassmartphones
andPDAs,and cellularwirelessmodemsassociatedwithdevicessuchaslaptopcomputersPolicyStatementForeligibleandauthorizedindividuals,theuniversitymayprovide:
Communicationdevicesandservicesthroughoneoftheuniversity'spurchasingcontracts,or Ataxablepayrollallowancetotheemployee,hereinafterreferredtoasaCommunicationTechnology
Allowance(CTA).Amonthlypayrollallowanceisprovidedtohelpcoverthemonthlycostforbusinessuseofanemployee'spersonalcellularvoiceorcellulardataservice.Themonthlypayrollallowanceamountwillbedeterminedperestablishedallowanceandreimbursementprocedures.InconformancewithU.S.taxregulations,allCTAsareconsideredtaxable,withoutexception.Theuniversityassumesnoliabilityforanyemployee‐ownedpersonaldevicesorserviceplans.
EligibilityforCTACommunicationtechnologyservicesmaybefundedifbusinessjusti icationcanbemadebytheemployingunitandfundingisavailable.InordertobeeligibleforaCTA,theemployee'semploymentclassi icationmustbeFaculty,Professional&Scienti icorexemptmerit.Employeesmustmeetatleastoneofthefollowingeligibilitycriteriaforanallowance.
Theemployee'sjobrequireshim/hertospendaconsiderableamountoftimeoutsideofhis/herassignedof iceorworkareaduringassignedworkinghours,requiringregularaccesstocommunicationtechnologies.
Theemployee'sjobrequireshim/hertobereachedeitherasarespondertoemergenciesoncampusortocarryouttheirassignedresponsibilitiesoutsideofnormalworkinghours.
TheCTAisnotintendedforoccasional,incidentaluse,purelyvoluntary/convenientaccess,orwhereneedscanbemetbyadepartmentalpoolofcellulardevicesavailablethroughuniversitycontracts.
FundingLimitationsofCTAUnitshaveauthoritytoestablishmorerestrictivepoliciesandtoreview,question,limit,andrefuse,duetofundinglimitations,requestsforCTAsthatotherwisemeeteligibilityrequirements.
Purchasing Card Program Guide 19 Revised November 2015
VI. Sales Tax Exemp on IowaStateUniversity(ISU),asastateeducationalinstitution,isexemptfrompayingstatesalestaxorlocaloptionsalestaxongoodsorservicespurchasedinthestateofIowa.Wearerequiredtopayhotel/moteltaxes.ThestateslistedbelowalsogranttaxexemptstatustoIowaStateUniversityforgoodsorservicespurchasedwhileintheirstate.Asindicatedbelow,aformorcopyofaletterisusuallyrequired.TheseformsorlettersmaybeobtainedbycontactingShandraVanBerkumat515‐294‐1308orshanvan@iastate.edu.GoodsorservicespurchasedbyIowaStateUniversitywhileinthefollowingstatesaresubjecttothatstate'ssalestax.GoodspurchasedbyISUandshippedtoanaddressinthesestatesalsoaresubjecttothatstate'ssalestax.IowaStateUniversityisnottaxexemptinthefollowingstates: Thefollowingstatesdonothaveageneralsalestax:
Alaska May need to pay city or local government taxes.
Hawaii No sales tax, but a gross receipts tax.
Montana
New Hampshire Must pay meals and rooms taxes.
New Mexico No sales tax, but a gross receipts tax; use Iowa form for exemption status.
Oregon
Alabama Nebraska Utah
Arizona Nevada Vermont
Arkansas New Jersey Virginia
California North Carolina Washington
Connecticut Oklahoma West Virginia
Georgia Pennsylvania Wisconsin
Louisiana South Carolina Wyoming
Maryland Tennessee
NeitherCTAsnoruniversity‐ownedcommunicationtechnologyplansmaybechargedtofederallysponsoredprojects,exceptwherecostsmeetthede initionof"unlikecircumstances"andareallowableinaccordancewithOMBCircularA‐21,ExhibitC,andtheuniversity'sSponsoredProgramsCostingPolicy.Theremaybespeci icrestrictionsontheuseofothernon‐federalsponsoredfundstopayfortechnologycosts.TheuniversityestablishesCTAlimitswhicharereviewedandadjustedperiodically.
Purchasing Card Program Guide 20 Revised November 2015
Colorado Need Iowa form showing Vendor name.
Florida Need copy of Florida exemption certificate.
Idaho Need copy of letter from Idaho.
Illinois Need copy of letter from Illinois.
Indiana Exempt only for conference rooms, meeting rooms and AV equipment. Contact purchasing for form and information.
Iowa Need Iowa form - Contact Shandra Van Berkum, 515-294-1308
Kansas Need copy of letter from Kansas.
Kentucky Need copy of letter from Kentucky.
Maine Need copy of Maine exemption certificate.
Massachusetts Need copy of Massachusetts exemption certificate.
Michigan Need to fill out Michigan form and present at time of purchase.
Minnesota Need to fill out Minnesota exemption certificate and present at time of purchase.
Mississippi Need copy of letter from Mississippi.
Missouri Need copy of letter from Missouri.
New York Need completed New York form.
North Dakota Need copy of North Dakota exemption certificate at time of purchase.
Ohio Need completed copy of Ohio blanket certificate.
Rhode Island Need copy of letter from Rhode Island and a copy Iowa exemption certificate.
South Dakota Need copy of letter from South Dakota.
Texas Need completed Texas form - No sales tax is charged on hotel rooms, however ISU is not exempt from state & local taxes on hotel rooms.
Washington D.C. Need copy of letter from Washington D.C.
VII. Forms Thefollowingpurchasingcardprogramformsmaybefoundathttp://www.purchasing.iastate.edu/card/forms.html.
Departmentagreement Certi icateoflostreceipt Transactionroutingrecordmaintenancerequest
IowaStateUniversityistaxexemptinthefollowingstates(formsotherthanIowaareavailableathttp://www.purchasing.iastate.edu/salestax.html): *Delawaredidnotrespondwithinformationregardingtax‐exemptstatus.
Purchasing Card Program Guide 21 Revised November 2015
VIII. Addi onal resources PurchasingDepartment“HowDoIBuy…”DecisionTree—http://www.purchasing.iastate.edu/commodities/StaffList/CommodityAssignments—http://www.purchasing.iastate.edu/staff/UniversityPolicyManualRecordsRetention—http://records.policy.iastate.edu/view.php?id=349Controller’sDepartmentGiftCerti icates—http://www.controller.iastate.edu/accounting/giftcerti icates.htmRiskManagementApprovedCaterers—http://www.riskmanagement.iastate.edu/foodTrademarkLicensingOf iceVisualIdentity—http://www.trademark.iastate.edu/units