Purchasing and Business Services Manual (PUR)

Effective: 10/1/1996

Revised: 7/1/2018

PUR 304–04: The Purchasing Card

Purpose

To facilitate the purchase of low-value items and items from contracts in the fastest and most efficient manner

Source

University policy

Applicability

Departmental purchase transactions

Description

This section is intended to explain the proper use of the Purchasing Card program. Details of the program are in The Purchasing Card: A Guide for Users, as described below.

The Purchasing Card is a corporate liability card. It is a method to spend university funds from a specific cost center.

Department leadership must agree to participate in the Purchasing Card program before cards will be issued to the department staff members.

Policy

Purchasing and Business Services publishes a cardholder’s guide that provides the details of the Purchasing Card program. The Purchasing Card: A Guide for Users is incorporated herein by reference. The Purchasing Card: A Guide for Users may be viewed on the Purchasing and Business Services website or obtained from Purchasing and Business Services. All forms used in the Purchasing Card program may also be found on this website.

The current generic dollar limit per Purchasing Card transaction is $10,000. This limit can be set for each individual card, and departments can obtain a higher transaction limit by justifying the need. The Purchasing Card is the preferred method for small-dollar purchases of $10,000 or less.

Card users must retain the cash register slip, card transaction document, and all other point-of-sale documents, including Purchasing Card statements in accordance with document retention requirements. These items are either retained by the cardholder or submitted to a designated monitor in the user’s department. In either case, the cardholder must attach the transaction documents to the monthly memo statement from the bank and submit them for review to an independent person in the cardholder’s department for review. The reviewer signifies that the transactions are reasonable and appropriate by signing the monthly memo statement.

The Purchasing Card can be used only to conduct university business. It may not normally be used to purchase items found on the P-Card Restricted Purchases List.

 

Note:

Certain sponsored accounts have additional restrictions. Purchasing Cards cannot be used for purchases that would be in violation of federal authoritative guidance or ASU policy. Federal authoritative guidance and ASU policy address (see the Research and Sponsored Projects Policies and Procedures Manual— RSP 101, “General Research Policy”), in part, the requirement to consistently treat costs incurred for the same purpose in like circumstances as either direct or indirect facilities & administrative (F&A) costs. For example, office supplies or postage and other mailing costs are typically treated as an indirect cost and therefore should not be directly charged to a sponsored project account by any means, including the use of a Purchasing Card. (See the RSP 508–01, “Charging Direct and Facilities & Administrative Costs to Sponsored Projects.”)

Cross-References

For information on records retention requirements, see PUR 207, “Records Retention.”

For further information about prohibited transactions, see the Financial Services Policies and Procedures Manual—FIN 401–03, “Prohibited Transactions.”

For more information on conflict of interest, see the Academic Affairs Policies and Procedures Manual—ACD 204–08, “Conflict of Interest.”

For authoritative references, see the Research and Sponsored Projects Policies and Procedures Manual— RSP 101, “General Research Policy.”

For information on direct and facilities and administrative costs, see RSP 508–01, “Charging Direct and Facilities & Administrative Costs to Sponsored Projects.”

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