Internal P-card Procedures

Updated: June 21, 2023

The Purchasing Card (P-card) system provides a convenient and cost-effective way to purchase University business-related items. Most P-card approvals and control features occur after the purchase has taken place. Examples of after-the-purchase controls include:

  • Support Documents for Each P-card Transaction: Transactions reported by the bank provide very little information about purchases. The name of the vendor is listed, but what was purchased is not. Support documents such as itemized receipts, however, provide detailed information about the purchase.
  • Reconciling P-card Transactions: Reconciling itemized receipts to transactions allows the cardholder to ensure all purchases are reported, any credits are received, and provides the opportunity to resolve any discrepancies.
  • U.S. Bank Controls: Certain merchant codes are blocked and P-card transactions are automatically declined. U.S. Bank provides USU P-card Program Administrators access to review all declined transactions. Program Administrators review declined transactions on a weekly basis, as well as unusual or irregular transactions.

There are three types of P-cards available:

  • Regular P-card: Allows for the purchase of general business-related items (delegate allowed).
  • Travel P-card: Allows for the purchase of business-related travel expenses to be paid in advance of travel (delegate allowed and does not leave place of work).
  • All-card: Allows for the purchase of general business-related items as well as business travel-related items. Delegated users are not allowed on an All-card.
Types of purchasing cards and uses

 

Procedures + Deadlines:

  • Supporting documentation is to be submitted within three (3) days of the transaction date.
  • Transactions at cardholder level (100 level), must be approved within two (2) weeks of the transaction date.
    • Signed documentation does not need cardholder approval in ServiceNow.
    • Unsigned documentation does require approval from the cardholder in ServiceNow.
  • All transactions must be submitted and approved within 30 days of the transaction date.
    • Fail to comply, cardholder will receive a 7-day grace period to resolve any pending transactions.
    • If pending transactions are not resolved, the P-card will be suspended until resolved.
    • Cardholder will be required to complete the online training to reinstate their P-card after suspension.
  • The Business Services Center will notify cardholder weekly (via email) of transactions needing attention.
  • Newly issued P-cards are to be picked up at the P-card Office located in Old Main, room 26.
    • Online training must be completed before you are allowed to pick up your new p-card.

Supporting Documentation:

All P-card transactions require supporting documentation. Supporting documentation is generally obtained from an itemized receipt. Each document must contain the following:

  1. Name of Merchant
  2. Transaction Date
  3. Price and Quantity of Items Purchased
  4. Description of Purchase
  5. Total Cost

If any of the above five (5) items are missing, the “Alternate receipt” option must be selected as the “Receipt Type”. An alternate receipt is defined as a document (i.e., receipt or invoice) from the vendor that is missing one or more of the five above requirements. Document must be provided.

Select the “Substitute receipt” option as the “Receipt Type” if no documentation is provided by the vendor or is lost.

 Internal P-card procedures. A mockup of a reciept featuring lines for Date of Purchase, merchant, the list items purchased and their cost, the subtotal and tax, the total spent, and the payment type.

 

Sales Tax Exemption:

The Utah State University sales tax exemption number is 11895815-002-STC.

Most purchases made within the State of Utah are tax exempt. P-cards have the University’s sales tax exemption number imprinted on them. Unless specifically stated by vendor policy, P-card Users should not pay Utah sales tax. Please let vendors know that your purchase is tax exempt. If sales tax of $5.00 or more is charged, the purchaser should work with the vendor to receive a reimbursement of the sales tax. If you are unable to receive the tax exemption, justification will be needed as to why sales tax was charged.

However, lodging is an example of a purchase that currently is not exempt (unless the amount is for $1,000 or more, or the vendor has a negotiated contract).

If you need a copy of the Sales Tax Exemption Form (TC-721g), please email the Business Services Center (cnrbsc_receipts@usu.edu) to receive an updated copy.

Delegated Card User:

This is a person who has been selected by a cardholder to use the cardholders P-card. Cardholders are responsible and accountable for all charges whether made by themselves or by their delegated users. Before a user can be added as a delegate, users must complete the online “Cardholder and Delegated User Training” and complete the Delegated Card User Form.  This form must be submitted to the Business Services Center before use of the P-card.

All-cards cannot have delegated users.

On-campus Transactions (OCC):

Each P-card issued has a unique On Campus Card (OCC) number. This number allows cardholders to use their P-cards to make purchases from on-campus vendors, such as the Campus Store, without the University incurring transaction fees from U.S. Bank. On-campus vendors require customers to present their P-card when purchases are made in person. Please do not use the OCC number that is on “file” with the vendor.

  • There may be USU departments that do not use OCC numbers, but accept P-cards for purchases.

P-card Changes:

Various changes to cards can be requested. These changes can include changing the type of card, spending limits, approval queues, the default index/account code, adding MCC (Merchant Category Codes) codes, suspending a card, and cancelling a card. These changes can be temporary or permanent.

Subscriptions + Contracts:

Examples of Authorized-Contractual P-card Purchases:

  • University Internet/Data Plans: These transactions require a contract to bind the University. Authorized University signatures are required to avoid personal liability. If the approved contract contains an Authorized University Signature, P-card payments are allowed; however, a copy of the signature page must be attached (does not include a data plan in an individual's name).
  • Storage Rentals: These transactions require a contract to bind the University. Authorized University signatures are required to avoid personal liability. If the approved contract contains an Authorized University Signature, P-card payments are allowed; however, a copy of the signature page must be attached.
  • When paying for a professional service (independent contractor, performer, honorarium, medical service, attorney or accountant) with a P-card, if a contract is required; the properly completed and authorized contract must be attached to the P-card transaction in ServiceNow.

It is recommended that the department attach the contract details (data plan agreement, storage unit agreement, service agreement, etc.) to the first billing of these services and reference the Document Code (S#) on all future charges.

  • Any changes to the contract details should be attached as needed.
  • If services began in the past – please attach the billing details to the most current charge and reference the Document Code (S#) on all future charges

Reporting Fraud on a P-card:

  • Immediately contact U.S. Bank at 1 (800) 344-5696. This number is printed on the back of
    every P-card.
    • The cardholder must call the issuing bank immediately upon discovering a fraudulent transaction. Help is available 24 hours a day. U.S. Bank Customer Service will review the last transactions on the card to verify authorized transactions and open a fraud case. The card will be immediately canceled and a replacement card will be issued. The replacement card will be available for use 3-5 days after the initial fraud notification. For more information regarding Fraud please see: U.S. Bank Corporate Payment Systems Program Administrator Guide (page: 20-24).
  • Notify P-card Program Administrator.

Lost Cards:

All P-cards are the property of Utah State University. If a card is lost or stolen, please do the following:

  • Immediately contact U.S. Bank at 1 (800) 344-5696. This number is printed on the back of
    every P-card.
    • The cardholder must call the issuing bank immediately upon discovering that the card has been lost or stolen. Help is available 24 hours a day. This is necessary in order to provide information on the last transactions made by the cardholder. U.S. Bank will block additional use of lost/stolen cards upon telephone notification. Prompt action in these circumstances can reduce the University’s liability for fraudulent charges.
  • Notify the P-card Program Administrator.

Improper Use of a P-card:

If you have a question regarding whether a P-card can be used for a certain type of purchase, please contact the Business Services Center or the P-card Program Administrator.

The P-card Program is administered in accordance with policies and procedures established by the Controller's Office and Purchasing Services. The Controller's Office and Purchasing Services are authorized to suspend or cancel P-card privileges for cardholders considered to be in violation of University and P-card policies and procedures.

For more information in regards to University P-card policies and procedures, please visit www.usu.edu/pcard.