Number: 
03-140-206
Type: 
Rule
Policy Steward: 
Sr Payment & Systems Manager
Format Updated: 
DONE
University Policy & Standards Converted: 
DONE
Status: 
Current
Revision Date: 
Monday, September 27, 2021
Next Review Date: 
Thursday, June 1, 2023

This information replaces FIS 408-01 Procurement Cards

 

Printable Version

 

1.      Summary

1.1.      Oregon State University contracts with a commercial third party vendor to provide Department Cards, Travel/Expense Cards and Student Group Cards.  Purchases from vendors that accept credit card payments may be charged to a university credit card except as prohibited by this policy.

1.2.      In order to fully utilize university credit cards and realize the associated administrative efficiencies and cost savings, OSU seeks to ensure that the policies and procedures related to university credit card programs are documented, communicated, clearly understood and consistently applied.  Establishing sound policies to guide the use of university credit cards is important to ensure compliance with state and federal laws, policies and rules.  The Vice President for Finance and Administration has authorized the Controller's Unit to implement and maintain the university-wide program.

1.3.      All Budget Authorities and Cardholders should be informed and understand this rule to ensure compliance with procurement policies and procedures.

2.      University Credit Card Types

2.1.      Department Card

2.1.1.     General:  The Department Card is available to eligible university employees to purchase many of the items needed for day-to-day operations.  These cards are primarily used for the acquisition of goods or services.  University-issued Department Cards may not be used for personal purchases, unauthorized transactions or shared with another individual.  (see section 3.6 for Restrictions)

2.1.2.    Credit Limit Information:  Higher monthly credit limits require additional approval from the Budget Authority and Card Administrator.

a)     $4,999 – Spending limit for a single card transaction

b)     $10,000 – Spending limit for the card billing cycle

2.1.3.     Requirements:  To obtain a card, an individual is required to:

a)     Submit a Card Request Form in Concur and

b)     Complete appropriate training (see section 3.8 for additional details)

2.2.      Travel and Expense Card

2.2.1.     General:  The Travel and Expense (T&E) Card is available to eligible university employees to pay for allowable travel expenses incurred while on official university business and for the acquisition of goods or services supporting university operations.  These cards may not be used for personal purchases, unauthorized transactions or shared with another individual.

2.2.2.     Credit Limit Information:  Higher monthly credit limits require additional approval from the Budget Authority and Card Administrator.

a)     $4,999 – Spending limit for a single T&E Card transaction

b)     $5,000 – Spending limit for the T&E Card billing cycle

2.2.3.     Requirements:  To obtain a card, an eligible individual is required to:

a)     Submit a Card Request Form in Concur and

b)     Complete appropriate training (see section 3.8 for additional details)

2.3.      Student Group Card

2.3.1.     General:  The Student Group Card is available to eligible university employees to accommodate and pay for student group or athletic team travel expenses incurred while on official university business.

2.3.2.     Credit Limit Information:  Based upon departmental request, the program administrator may approve higher monthly credit limits.

a)     No spending limit for a single Student Group Card transaction

b)     $10,000 – Billing Cycle spending limit for Student Groups

c)     $20,000 – Billing Cycle spending limit for Athletic Teams

2.3.3.     Requirements:  To obtain a card, an individual is required to:

a)     Submit a Card Request Form in Concur and

b)     Complete appropriate training (see section 3.8 for additional details)

3.      Responsibilities & Procedures

3.1.      Cardholder

3.1.1.     Eligibility:

a)     Cardholder must be a current OSU employee (faculty or classified staff or Graduate Assistant).

b)     All required training must be completed.

3.1.2.     Cardholder may not be the Budget Authority for the same card.

3.1.3.     Specific Card Program responsibilities include, but are not limited to:

a)     Making card purchases in compliance with Program Policy and Procedures.

b)     Collecting appropriate purchase documentation for each card transaction and uploading to Concur.

c)     Informing Card Administrator or USBank immediately regarding lost/stolen cards.

d)     Resolving purchase returns and problem purchases.

e)     Accepting personal responsibility for non-business charges.

f)      Managing physical custody and security of the card and account number.

g)     Submitting expense report in Concur.

h)     Monitoring card transactions for appropriate use and potentially fraudulent activity.

i)      Maintaining Bank Account Online Access (do not share login information).

3.2.      Budget Authority

3.2.1.     A Budget Authority may not be the Cardholder for the same card.

3.2.2.     Specific Card Program responsibilities include, but are not limited to:

a)     Making sound business decisions based on financial resources allocated to the unit.

b)     Ensuring overall compliance with Card Program policy and procedures.

c)     Authorizing card application by card request system approval.

d)     Reviewing and approving transactions and monthly expense reports.

e)     Documenting corrective actions taken, if noncompliance is identified.

3.3.      University Credit Card Program Administrator

3.3.1.     Specific Card Program responsibilities include, but are not limited to:

a)     Approving initial card requests.

b)     Requesting cards from bank.

c)     Disseminating cards to Cardholders.

d)     Managing required training and creating card reference materials.

e)     Processing lost/stolen cards and updates.

f)      Performing transaction reviews and follow-up.

3.4.      Restrictions

3.4.1.     Use of university cards must have a business purpose and comply with all other OSU policies that address allowable expenditures, including the following:

a)     03-140-401 Travel

b)     03-140-501 Communication Services

c)     03-140-502 Licenses and Occupational Fees

d)     03-140-503 Memberships, Dues and Subscriptions

e)     03-140-504 Donations, Contributions and Sponsorships

f)      03-140-505 Meals, Refreshments and Events (Non-Travel)

g)     03-140-510 Services

h)     03-140-513 Miscellaneous Costs

i)       03-150-301 Oregon State University Foundation

j)       03-150-108 Recharge Activities (Internal Sales)

k)       Campus Facilities and Grounds Policies and Procedures

3.4.2.     University cards may NOT be used as a purchasing method for the following expenditures.  Some of these may be allowable using other payment methods but cannot be properly tracked or documented with this form of payment.

a)     Cash Advances

b)     Personal, Non-Business Items

c)     Capital Expenditures – Transactions must be properly recorded through fixed asset system.  Exemptions include small transactions toward a capitalized asset for Library (40190) and Construction in Progress–Equipment (40199).

d)     Foreign Intangibles – Transactions must be reviewed for software, subscriptions, equipment rentals, patents and copyrights.  US-sourced income transactions may require tax withholding.

e)     Services Provided by a University Employee – Transactions must be reviewed to verify that Personal Services Contract is set up appropriately (see policy).  Otherwise, any payments to an employee must be paid through payroll.

f)      Awards, Prizes and Gifts – The fair market value of any prize or award given to a recipient must be properly recorded and reported.  All employee awards must be paid through payroll (see fiscal policies 03-140-507 Employee Recognition and 03-140-512 Gift Cards or Certificates).  Exemption for Gift Card purchases with an individual value of $50 or less.

3.5.      Misuse of Card & Violations

3.5.1.     Cards are issued for business use only and may not be used for personal purchases.  All purchases made on cards must comply with university policy and fiscal rules.  Every violation discovered will be reported to and monitored by Card Administrator.

3.5.2.     Card misuse is subject to corrective action that may include written notification of misuse, additional training, the suspension or loss of card privileges, disciplinary action or termination of employment dependent on severity of misuse.

3.5.3.     Violations will be categorized into one of the following categories, with the following consequences:

a)     Non-Compliant Purchases (unintentional errors)

  • A formal warning will be delivered to the Cardholder and Budget Authority by the Card Administrator.  The Cardholder’s or Budget Authority’s immediate supervisor may also be contacted depending on type of misuse.

  • If misuse continues, the Travel and Expense Office will send notification to the Cardholder and Budget Authority notifying them that the Card privileges will be revoked for a minimum of 90 days.

b)     Intentional Misconduct

  • If OSU employees are deemed to be intentionally and knowingly using a university card for purchases that are not compliant with this fiscal rule, they will be dealt with in accordance with the university’s policy and procedures on employee discipline for financial misconduct up to and including termination of employment and criminal prosecution, if warranted.

3.6.      University Credit Card Training

3.6.1.     Cardholders and Budget Authorities must complete the online training required for their respective roles and responsibilities.

3.6.2.     Refresher Training must be taken every two years to remain eligible for participation in the Card Program.

4.      Related Information

4.1.      University Policy 03-100 Fiscal Policy Program Authority

4.2.      Please refer to all other policies, standards, fiscal rules and related guidelines that may be applicable, including but not limited to the following:

4.2.1.     03-140-02 Licenses and Occupational Fees

4.2.2.     03-140-401 Travel

4.2.3.     03-140-505 Meals, Refreshments and Events (Non-Travel)

4.2.4.     03-150-301 Oregon State University Foundation

4.3.      Please check with your unit/college for unit-level procedures related to this rule.

4.4.      Following are forms and other resources related to this policy:

4.4.1.     OSU Purchasing Card Site

4.5.      Fiscal Policy Program Definitions of Terminology

4.6.      Fiscal Policy Program Frequently Asked Questions (FAQs)

5.      History

5.1.      Original Issue Date:  01/2003 (FIS 408-01 Procurement Cards)

5.2.      Last Version:  03/2016 (FIS 408-01 Procurement Cards)

5.3.      Last Review Date:  09/2021

5.4.      Next Scheduled Review Date:  09/2024

6.      Contacts

6.1.      Policy Steward:  Senior Payment & Systems Manager

6.2.      Program:  Fiscal Policy Officer, Financial Accounting & Analysis

6.3.      Link to full list of Fiscal Policy Program Contacts