Purchasing Card Required Practices

All ALVSCE units and card holders must be familiar and comply with all requirements outlined in the University of Arizona FSO PCard Manual.

In addition to the policies and processes required by the University, ALVSCE units with active PCards must also adhere to the following:

1. All transactions must be viewable as standalone transactions. eDoc initiators must cross reference any transaction that impacts another transaction to create an audit trail. For example, a DI/GEC to correct an accounting line must be noted on all related documents.

2. Business Officers must have a process to maintain appropriate limits on all active PCards by reviewing spending limits at least once a year. 

Note: Business Officer should use the PCard Limit Analysis Dashboard to check PCard spending limits in their unit.

3. Transactions cannot be reconciled and approved by the same individual.  The Business Officer must identify primary and secondary individuals for clear separation of duties to reduce the risk of PCard fraud.

Note: If the unit does not have the capacity to ensure separation of duties for PCard transactions, they can submit a DBS Support Request Form to request temporary assistance from the DBS Team. 

4. In the event of an auto approved transaction, the reconciler and approver must fully document the transaction with the following steps:

• The reconciler must add a note indicating that the purchase was reviewed and attach all received paperwork, even after the fact.
• The approver must acknowledge that the purchase was reviewed and that they approve the transaction.

5. All units within the Division must adhere to the following violation escalation policy.  Violations include but are not limited to: unauthorized or prohibited purchases, missing receipts, auto approved transactions, and cardholders who repeatedly submit required documentation late or incomplete.

            Violation Escalation Process

When a PCard holder has committed a violation to university or ALVSCE process/policy, as indicated above, a 3-tier escalation process will be initiated. Cardholder violations will be tracked by the Business Manager.

1^st offense – the Business Manager sends a written warning via e-mail to the cardholder within 2 business days of the violation occurring. Unit Department Head and Unit MFA are CC’d on this written warning.

2^nd offense – a written notice is sent to the cardholder, with the Unit Department Head copied, stating the PCard spending limit has been brought down to $1 (if an individual PCard).  The cardholder must submit a written corrective action plan to the Business Manager detailing how this will be prevented in the future.  The cardholder must re-take (and pass) the PCard exam before the card’s spending limit is reinstated.

• If repeated offenses occur on a departmental card, the individual will lose their ability to use the departmental card for future purchases.

3^rd offense – if a 3^rd violation occurs within a 1-year period, the PCard will be suspended indefinitely and the PCard holder will lose the ability to utilize a departmental PCard.  Other forms of payment will need to be used for all business-related purchases

6. To prevent unauthorized purchases and fraudulent charges, PCard information may not be stored with vendor accounts.  In the rare circumstances in which this must be done to complete official university business, the following must be adhered to:
   
   • The cardholder must request approval from their Unit Head/Director stating why the card must be stored with the vendor and what business is conducted with that vendor. They must receive explicit, written approval from the Unit Head/Director for the specific vendor.  This approval notice must be sent to the Business Officer to be saved in their records.  Blanket approvals will not be given.
   • The card must be an individual PCard. Departmental cards are not allowed to be stored with any vendor account.
   • Cardholder and Business Officer must monitor the transactions closely to ensure that only authorized, business related purchases are processed on the card.

PCard Holder Responsibility

1. Cardholders are responsible for submitting required documentation within 3 days of the transaction and provide a complete and comprehensive business purpose for every purchase made. The business purpose must explain the appropriateness of the expense and justify how it supports or advances the goals and objectives of the university. 

            Note: For detailed examples of business purposes and required associated documentation, please visit the FSO Business Purpose Guide.

2. Cardholders must be aware of and follow their unit’s processes for submitting required PCard documentation.

3. It is the responsibility of the cardholder to understand allowable and prohibited PCard purchases.

4. If a cardholder loses a receipt, it is their responsibility to immediately reach out to the vendor for a duplicate one. In the event the vendor cannot provide a new itemized receipt, a Missing Receipt Form must be completed and submitted by the cardholder. 

5. When a cardholder commits a PCard purchase violation, whether intentional or not, they must submit a Self-Reporting Violation Form. If repayment to the university is required, the employee must connect with the Business Manager to submit payment ASAP. 

• Examples include but are not limited to: Personal expenses like preferred airline seating, early bird check-in, optional charges (such as insurance) on rental vehicles, alcohol purchases, donations, gifts, tipping over 20% of the total bill, or any purchase without a valid University business purpose.