Using the Card


The Procurement Card (P-Card) is a VISA credit card issued by US Bank showing the name IOWA STATE UNIVERSITY, the individual cardholder's name, and the ISU department name.

The Procurement Card program is designed to improve efficiency in processing and completing low-dollar purchases of approved commodities from any supplier that accepts a VISA credit card. This program will enable you to purchase approved commodities directly from suppliers. Payment for all Procurement card transactions is performed electronically, which eliminates the need to process supplier invoices and to issue checks for payment of each invoice.

The card is a privilege granted to the individual by the university, so it is the duty of each cardholder to ensure the responsible use of university funds. The university will seek restitution for any inappropriate charges made to the card. Fraudulent or intentional misuse of the card will result in revocation of the card.

Procurement Services, Accounting, and the Internal Audit Office will monitor the performance of the Procurement Card program.

 

Questions or concerns regarding policy should be directed to

 

Cory HarmsDirector of Procurement Services

Phone: 515-294-2591

Email: clharms@iastate.edu 

 

Questions or concerns regarding non policy should be directed to

 

Acceptable Uses

The P-Card may be used for purchases of all non-restricted (acceptable) commodities that cost less than the cardholder’s authorized single purchase limit, do not require a signed contract or approval of terms and conditions, and are not available through University stores or University contracts. 

Each P-Card is issued to the individual named on the card and Iowa State University is clearly indicated on the card as the corporate buyer of products and services.  The P-Card is not to be used for personal transactions. 

The P-Card may be used for conference registration fees if it is not possible to charge the transaction to a travel and hospitality (T&H) card.  Fees for optional events such as tours, golf outings and other similar events are considered personal and are not to be charged to the P-Card or the T&H card.   

Dues or memberships may also be paid with the P-Card providing some benefit is derived by ISU as a result of the membership (see University Policy Library, policy.iastate.edu/policy/memberships/, for further information).  The purchase of a membership such as Amazon Prime is considered a reward program and not allowable because these memberships are not limited to ISU business only and can be used for personal purchases. 

Journal reprints, classified advertising, and subscriptions may be paid with the card. 

Limitations and Restrictions

All purchase transactions processed against the Procurement Card must be made by the individual to whom the card is issued. The card is to be used only by the named cardholder and is not to be loaned to another employee or any other person. The cardholder has full liability for any improper charges that result from allowing others to use the card. 

All transactions are authorized or declined based on the following Procurement Card authorization criteria: 

  • Single purchase limit, not to exceed $4,900* 
    (including all delivery, shipping and/or handling charges) 
  • Spending limit per monthly cycle, up to $15,000* ** 
  • Approved merchant commodity codes 

*Lower limits may be established at departmental request. 
**If beneficial to the university a higher monthly limit may be granted. 


The Procurement Card may NOT be used for the following transactions:

Equipment

  • Items valued at $5,000 or more, tagable for inventory, with a useful life of 1+ year
  • Automatic electronic defibrillators (AEDs)
  • Computers (servers, desktops, laptops, tablets, iPads) (except Apple products at University Bookstore/TechCyte)
  • Copiers
  • Purchases involving trade of ISU property
  • Telephones, cordless telephones, IP phones, cell phones and related equipment (except from contracted suppliers for ISU owned equipment)

Employee Travel expenses

  • Airline tickets
  • Hotel rooms (including reservation of rooms)
  • Meals
  • Car rentals
  • Parking fees
  • Gasoline and fuel

To external suppliers for items available through University stores, services, and cyBUY Contract Marketplace

  • Printing and photocopying
  • Business cards and letterhead 
  • Postal and parcel services
  • Photocopier supplies (including toner cartridges)
  • Cylinder gases and liquid nitrogen

Personal items and gifts

  • Items for personal use
  • Gifts benefiting an individual employee (if the funding does not allow such purchases)
  • Donations 

Services

  • Services requiring a signed contract
  • Rental of high-value (>$5,000) or high-risk equipment
  • Construction services and repair of facilities 
  • Professional services
  • Moving services (employee relocation)
  • Telecommunication services (except from contracted suppliers)

Items restricted due to standards/reporting issues

  • Package alcohol
  • Controlled substances
  • Computers (servers, desktops, laptops, tablets, iPads) (except Apple products at University Bookstore/TechCyte)
  • Firearms, weapons, and ammunition
  • Furniture, furnishings, and artwork 
  • Items for Campus Organizations 
  • Items from conflict of interest suppliers
  • Items from online auctions
  • Laboratory animals, livestock, animal cages and aquariums
  • Leases/Rental of land and/or office space
  • Pharmaceuticals and drugs
  • Radioactive materials and hazardous materials

    Cardholders are expected to purchase items that are stocked at University Stores (Central Stores, Chemistry Stores, University Bookstore, Printing Services) whenever possible, unless substantial savings can be realized through cyBUY or other University contracts.

    Violating any of these policies may result in the immediate termination of the privilege to use the P-Card.  Non-adherence to any of the procedures enumerated in the Agreement, the Program Guide, or the Statement of Procurement Card Receipt will result in revocation of individual cardholder privileges and may result in revocation of all division or departmental P-Cards.  Cardholders will be issued an e-mail reminder/warning by Procurement Services for violations.  Three violations by a cardholder may result in permanent suspension of card privileges.  Fraudulent use of the P-Card will result in disciplinary action in accordance with the policies of Iowa State University Human Resources. 

     
    Purchases must be for the use and benefit of the University.  NO PERSONAL PURCHASES ARE ALLOWED.  If any portion of a P-Card transaction is determined to be a personal purchase, that amount must be charged to the cardholder’s U-Bill using the “personal charge on credit card” spend category when completing transaction verification.     

    Non-Compliant Activity

    Cardholders who have been found to have violated the terms of the cardholder agreement (purchased restricted items, failed to reconcile transactions, shared their card, split transactions to exceed limits, etc.) will be issued an email warning regarding the violation from Procurement Services. This will be documented in their card profile. A cardholder that has three violations may be subject to permanent card suspension. 

     

    Using the P-Card

    Ordering Process

    The Procurement Card program provides another option to the existing procurement procedures regarding transactions for goods, services and supplies valued at $4,900 or less (including all delivery, shipping, etc.).  No single purchase is to exceed the cardholder’s single purchase limit.  Making multiple transactions to the same supplier on the same date to bypass a card’s single purchase limit is a violation of the Cardholder Agreement and Statement of Receipt, signed by the cardholder.  Any evidence that a cardholder has used these or other means to avoid the single purchase limit may result in the loss of Procurement Card privileges. 

    Purchases of P-Card restricted commodities and purchases of more than $4,900 (or the cardholder’s single purchase limit) should continue to be processed in accordance with established procurement/disbursement policies and procedures.  Methods of procuring items that cannot be purchased with a P-Card might include creating catalog requisitions (cyBUY) or non-catalog requisitions (resulting in a purchase order).  Additional information about procurement procedures may be found at the Procurement Services web site: https://www.procurement.iastate.edu/resources/payment-and-procurement-methods

    Please be certain to follow these procedures when using the Procurement Card:

    • Identify if the purchase is appropriate for a P-Card transaction by checking:
      •  The list of restricted commodities, 
      • To see if the item is available through cyBUY suppliers or other suppliers with competitively bid contracts with ISU.   The cyBUY suppliers may be found by initiating a catalog requisition through the Procurement Worklet in Workday.   Other University contracts may be found on the contracts page of the Procurement Services website (https://www.procurement.iastate.edu/contracts/by-supplier). 
      • To see if the item is stocked and may be purchased through University Stores (Central Stores, Chemistry Stores, ISU Bookstore, Printing Services). 
      • Determine if your transaction total is less than your authorized single purchase limit.  If not, the transaction must be processed in accordance with established procurement/disbursement policies and procedures, and the card may not be utilized.  
    • Contact the supplier and: 
      • State that you are from Iowa State University, and you will be making a Visa purchase.  Emphasize that the University is sales tax exempt! 
      • If the supplier requests the University's sales tax exempt number, please provide the appropriate number: Sales Tax: 1-85000775M
      • If the supplier requests a University sales tax exempt certificate, request a form at https://www.procurement.iastate.edu/resources/salestax/tax-exempt-form
      • Place order. 
      • Give supplier the P-Card number and expiration date, and Card Verification Value (CVV), if requested. 
      • Give supplier your name, the department name, and complete delivery address. (Please provide complete shipping address, including building name, room number, and street address to insure proper delivery.)  If the supplier asks for the statement or billing address, it is generally your office address.  Contact the card services help desk at 515-294-7024 or cardservices@iastate.edu for specific information. 
    • Make sure that the appropriate departmental personnel are aware of your purchase, and that you have followed all departmental procedures, including University record retention/documentation requirements, which can be found at https://records.policy.iastate.edu/.   
    • A legible, itemized transaction receipt must be retained as part of the purchase transaction documentation. 
    • When receiving a shipment, it is the responsibility of the cardholder to promptly inspect the shipment in accordance with procedures for receipt and inspec tion of purchased goods.  In case of returns, the cardholder is responsible for coordinating the return directly with the supplier and for contacting the card services team with any unresolved issues. 

    Transaction Verification

    The cardholder will receive an e-mail and Workday notification for each of their P-Card transactions that are ready to be verified.  The notifications will ask whether they wish to complete the verification on their own or have their procurement and expense specialist (PES) complete the verification on their behalf.   Transaction verification must be completed within thirty days of the date the transaction posted to Workday.    

    If the cardholder is completing verification on their own, the e-mail and Workday notification will contain a link to navigate to complete the task.  To verify a transaction the cardholder will need to:  

    •  Enter a description of the purchase in the Line Item Description field 
    • Enter a Spend Category to classify the type of good or service purchased  
    • Provide a University business purpose for the purchase in the Memo field  
    • Enter a Driver Worktag (Program, Grant, Gift or Project) to assign funding  
    • Attach legible, itemized receipt/purchase documentation 

    PCV’s for credit transactions should be processed in the same manner as PCV’s for corresponding charge transactions.   

    Procurement Card Verification Job Aid:  https://iastate.service-now.com/finance?id=kb_article&sysparm_article=KB0011843

    If the cardholder is requesting the PES complete the verification on their behalf, the cardholder will reply to the e-mail with the required information needed to complete verification.  Required information would include a legible, itemized receipt and business purpose, at a minimum, but may also include funding Worktags.  

    Approval routing for P-Card verifications is as follows:   

    1. If submitted by the cardholder, routes to the PES for review.   
    1. Routes to cost center manager(s) associated with the Worktag(s) for approval.  
    1. If contains grant Worktags, routes to grants finance specialist for review.  

    Weekly reminder messages will be sent by e-mail to cardholders when transaction verifications (PCVs) have not been completed within 30 days of the transaction post date.  Cardholders may review their transactions via the report My Procurement Card Transactions in Workday.  If the cardholder fails to enter verification information or provide that information to the procurement and expense specialists (PES) so transactions may be reconciled within thirty days, it will be grounds for suspension of card privileges.  Suspended cards may be reinstated when all outstanding transactions are reconciled.  If a cardholder has their card suspended twice for incomplete transactions over thirty days old may permanently lose their card privileges.    

    Incomplete transactions that reach sixty days past the post date to Workday will be moved to the cardholder’s U-Bill.  Transactions that post to the cardholder’s U-Bill may only be reversed with the permission of the Senior Vice President for Operations and Finance, or their designee.   Cardholders who have extenuating circumstances or supplier issues that preclude them from completing transaction verification may not be subject to the late transaction penalties if they contact Procurement Services (cardservices@iastate.edu) for assistance.  

    Keep in mind that the supplier is paid on the transaction post date, and the University’s credit card charges are paid by electronic fund transfer regardless of incorrect totals or disputed charges.  Do not ignore the PCV, as disputed transactions or cases of fraudulent activity must be identified to U.S. Bank within 60 days (see Section IX - Transaction discrepancies, disputes, and fraud).  Note:  PCV’s for fraudulent or disputed charges, as well as their corresponding credits, will be verified by the card services team.  

    Violating any of these policies may result in the immediate termination of the privilege to use the P-Card.  Non-adherence to any of the procedures enumerated in the Agreement, the Program Guide, or the Statement of Procurement Card Receipt will result in revocation of individual cardholder privileges and may result in revocation of all division or departmental P-Cards.  Cardholders will be issued an e-mail reminder/warning by Procurement Services for violations.  Three violations by a cardholder may result in permanent suspension of card privileges.  Fraudulent use of the P-Card will result in disciplinary action in accordance with the policies of Iowa State University Human Resources. 

    Purchases must be for the use and benefit of the university. 

    Purchases must be for the use and benefit of the University.  NO PERSONAL PURCHASES ARE ALLOWED.  If any portion of a P-Card transaction is determined to be a personal purchase, that amount must be charged to the cardholder’s U-Bill using the “personal charge on credit card” spend category when completing transaction verification.

    Receipts and Documentation

    The P-Card program facilitates point-of-sale purchases, giving authorized cardholders the ability to purchase specific goods, services and supplies directly from a supplier.  It is the responsibility of each cardholder and their procurement and expense specialists (PES) to attach legible, itemized receipts to Procurement Card verification documents (PCV’s) in Workday. Documentation MUST support an authorized (acceptable) business purpose for all transactions made with the P-Card.   

    Supporting documentation might include the following: 

    • Itemized point-of-sale receipt or supplier invoice. 
    • Itemized order confirmation for intangible goods (e.g., registrations, subscriptions, etc.) 
    • Packing slip (for goods received). 

    All faculty and staff have responsibility for identifying and retaining university records - paper and electronic - in accordance with the Records Retention Guidance and Schedule found at https://records.policy.iastate.edu/ .   

    Federal contracts may require the application of federal records disposition schedules. In such cases, the federal records disposition schedules will take precedence over the University Records Retention Policy and Schedule. 

    Transactions will be subject to audit by Procurement Services, Controller’s Department, Internal Audit and/or State of Iowa Auditors. 

     

     

    When to contact Card Services (declines, lost or stolen card, discrepancies, disputes, fraud, transfer or termination)

    My Card was Declined

    Make sure that the amount of your purchase is not above your transaction limit or that you have not exceeded the monthly cycle limit for your card (remember that the cycle begins on the 12th of the month). If the transaction falls within your limits, the transaction may be declined because the supplier's Merchant Commodity Code is blocked on your card configuration. Contact the card services team at 515-294-7024 or cardservices@iastate.edu for assistance. 

    All transactions are authorized or declined based on the following Procurement Card authorization criteria: 

    • Single purchase limit, not to exceed $4,900* 
      (including all delivery, shipping and/or handling charges) 
    • Spending limit per monthly cycle, up to $15,000* ** 
    • Approved merchant commodity codes 

    *Lower limits may be established at departmental request. 
    **If beneficial to the university a higher monthly limit may be granted. 

     

    Reporting a Lost or Stolen Card

    If a P-Card is lost or stolen, the cardholder must immediately: 

    • Contact the CARD SERVICES TEAM at 515-294-7024 during business hours, or 
    • CONTACT U.S. BANK at 800-344-5696 after business hours, on weekends or holidays.  

    It is also the responsibility of the cardholder to report the loss of a P-Card immediately to ISU’s Public Safety Office at 515-294-4428.   

    The cardholder’s department has full liability for any charges to the card, prior to the time it is reported lost or stolen. Should you need emergency assistance from Visa that U.S. Bank is unable to provide, Visa may be contacted at 1-800-847-2911

     

    Discrepancies, Disputes, and Fraud

    Unauthorized transactions to unknown suppliers should be reported to the card services team (515-294-7024 or cardservices@iastate.edu) immediately.  If transactions are determined to be fraudulent, the card services team will notify U.S. Bank fraud prevention.   

    For unrecognized or incorrect transactions, the cardholder should first seek resolution with the supplier. If resolution cannot be achieved with the supplier, the cardholder shall contact the card services team, within 30 days of the post date, with supporting information.  The card services team will investigate the transaction, and, if appropriate, initiate a dispute through U.S. Bank.  Once the charge is disputed, U.S. Bank will request documentation from the supplier.  If the supplier fails to provide suitable documentation supporting the charge, the disputed amount will be credited back to the cardholder’s account. 

    Transactions sixty (60) days past the cycle date (see Section III) cannot be reported as fraudulent or be disputed with U.S. Bank, and will be the responsibility of the cardholder’s department. 

     

    Employee Transfer or Termination 

    The employee or employing department must immediately notify the card services team (515-294-7024 or cardservices@iastate.edu) upon learning of cardholder terminations or transfers.  The card services team will notify U.S. Bank to terminate card privileges on the cardholder’s last day of employment (or earlier, if requested), thereby protecting the University through Visa’s Liability Waiver Program.  Failure to notify U.S. Bank within two (2) days of learning of an employment status change voids this protection.  The employing department is responsible for destroying and discarding the P-Card once the cardholder leaves the University/department.  Do NOT send active P-Cards through campus mail.