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Department of Finance
Ohio University
79 S Court St
Lindley Hall N162
Athens, OH 45701
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Finance

11. Appendix A | Departmental Card Procedures

11.1 Overview

The departmental purchasing card (Department Card) is one of the cards available through the University’s credit card program and is used for departmental purchases. The Department Card is issued to the department or service center (e.g., “XXXXXX Department”), and does not contain a specific employee name. Every card has an assigned “Card Custodian” who is a departmental requisitioner who has been trained on purchasing policies and procedures. The monthly limit for a department Card is $25,000.

The Department Card should be used for low dollar value goods (less than $5000 for a single transaction) that cannot be purchased via BobcatBUY from a contract or through a university preferred supplier as allowed by policy. Based on the business need, this card may also be used for payment of group and event expenses, in accordance with policy. The Department Card can also be used at local stores by a departmental employee; however, the university does not control whether a merchant will accept the card given it does not have a specific person’s name on the card. The Department Card cannot be taken on a trip and be used by employees while traveling.

It may be used by those individuals who have the responsibility to purchase on behalf of their department. The card is also a viable option for individuals that only have a sporadic need for a card (i.e., an occasional membership or purchase) that doesn’t warrant being a permanent cardholder. For someone to use the Department Card, they must “sign out” the card from the Card Custodian for a specified period of time and must be familiar with the university purchasing policies and procedures. They will be responsible for any misuse of the card, while it is in their possession. They are also responsible for providing all required transaction documentation to the card custodian.

11.2. Responsibilities for the Department Card

11.2.1. Planning Unit Chief Financial and Administrative Officer (CFAO)

The planning unit Chief Financial & Administrative Officer (CFAO) of record in FARM, along with the Card Custodian are responsible for the oversight and proper usage of the Departmental P-Card. The CFAO is responsible to ensure that all cardholders, users of the card, expense delegates, and approvers observe University policies and procedures, including state and federal laws and regulations, and complete any required trainings.

While the planning unit CFAO may delegate purchasing authority and payment approval, the CFAO retains the ultimate responsibility for ensuring the integrity of the University credit card purchase and approval process, even if specific tasks have been delegated.

The CFAO is responsible for establishing the planning unit’s procedures for use of the Department Card program. At a minimum, these guidelines must include:

• Department Cards are issued in the department’s name and the department is administratively responsible for the card.

• There must be a Card Custodian (and potentially a backup) who handles the Department Card. This includes maintaining the Card Tracking Log to sign out the card, maintaining the documentation and verifying the transactions in Concur. The Card Custodian must be familiar with and adhere to the University purchasing and p-card policies.

• The Department Card must always be stored in a secure place.

• The Department Card can be shared with other employees within a department provided the use is approved by the Card Custodian and in accordance with university policies and procedures, including allowability of expenses

• If the Department Card is used by an individual other than the Card Custodian, the transfer of custody must be recorded on the Tracking Log. The Card Custodian is responsible for maintaining the Departmental Card Tracking Log.

• Random audits of the Departmental Card Tracking Logs may be performed by Internal Audit or Finance to ensure proper recording of card activity. The Card Custodian will be responsible for providing the logs upon request.

• Any misuse of the Department Card will be flagged for violation and the CFAO will be notified to determine any consequences for the misuse in accordance with policy and HR processes.

• Repeated violations on a Department Card (regardless of infraction type) will cause the Department Card to be closed.

If the Departmental Card is not returned by the designated date, the CFAO must follow up in writing immediately with the user to return the card. If the user is unresponsive, the CFAO should have the card placed on hold until it can be safely returned to prohibit unauthorized transactions

Repeated violations on a department card (regardless of infraction type) will cause the department card to be closed. This includes not reconciling transactions in a timely manner. The CFAO must ensure that their planning unit is in compliance with al PCard policies and procedures whether they pertain to individual or department cards.

11.2.2. Card Custodian

The Card Custodian is identified in Concur as the cardholder. The Custodian needs to be administratively responsible for the Card, maintaining the Card Tracking log, reconciling all transactions on the card, and advising users on all purchasing and p-card policies and procedures. Specific duties include:

  • Must store both the Department Card and the Card Tracking Log in a secure place.
  • May transfer the custody of the Department Card to department users via the Tracking Log.
  • Must maintain the Card Tracking Log in the department for four (4) years from the last date of activity on the log, as required by the retention policy for all P-Card related documents. These logs will be subject to random audits by Internal Audit or Finance to ensure proper recording of card activity.
  • Is responsible for reconciliation of all transactions and ensuring receipts and all required supporting documentation is collected and entered into Concur, in accordance with policy.
  • Has the authority to deny usage of the card, particularly if they are aware that the card will be used for something unallowable under University policy.
  • May not sign the card out for use on a trip as employee cannot use the card when travelling.
  • Is responsible for ensuring there are adequate funds available on the card before it is signed out to a user. If changes to the Department Card monthly limit are needed, the CFAO or delegate can contact the Pcard Administrator to make any adjustments.
  • Provides a tax-exempt form (if needed) to the user, so that purchases are properly processed as tax-exempt.
  • Notifies the CFAO when the user has not returned the Department Card by the designated date.

Provided the Card Custodian maintains the “chain of custody” for the Department Card, they will not be responsible for misuse when the card is signed out to another employee. This custody is maintained through the use of the Departmental Card Tracking log.

11.2.3. Department Card Users

The employee that signs out the department card (i.e., the user) is responsible for the security and safeguard of the Department Card while in their possession.

  • Must provide all required information on the Departmental Card Tracking Log, in its entirety.
  • Must return the card to the Card Custodian by the designated date.
  • Must return all the required documentation for the purchases made while the card is in their possession. This includes providing itemized receipts and all necessary supporting documentation (i.e, business purpose, account information, list of participants, agendas, etc.) to the Card Custodian upon return of the Department Card.

Any charges that occur when the card is signed out to a user are the sole responsibility of the user.

Departmental P-Cards cannot be taken on a trip and used by employees while traveling.

11.3. Reconciling Transactions

The same rules apply to reconciling transactions as included in section 8.5. While you will complete separate reports for each department card (if the department has more than one), it is not necessary to complete separate reports for each individual user of the card.

11.4. Department Card Tracking Log

Planning Units are allowed to develop their own logs; however we suggest that it include the following information:

  • Department Name
  • PCard Holder Name
  • Last 4 Digits of Card
  • Spaces to record when a card is checked out.
    • Date and Time
    • Individual's name who is using card
    • Vendor name/Purpose of using card
    • Estimated Amount
  • Spaces to record when card is returned
    • Date and Time
    • Signature of PCard holder acknowledging that card has been returned with all receipts and supporting documentation