Purchasing Card Expectations
September 2014
To help ensure purchases made with a purchasing card are in compliance with UW-Madison, State of Wisconsin, and Federal policies/laws we have put together a list of items that should not be purchased with a p-card, or require special handling. This is not an all-inclusive list but does address common concerns regarding purchasing trends. Noncompliance with the policy and procedures may result in fines or other negative consequences for UW-Madison as well as your department.
The following link takes you to the Cardholder Guide: http://www.bussvc.wisc.edu/acct/purchcd/cardman.html
The following link takes you to the Purchasing Policy and Procedure #4 which provides important information regarding special approval requirements: http://www.bussvc.wisc.edu/purch/ppp4.html#license
The Purchasing Card Noncompliance Policy and Procedure is attached to this document.
Before placing orders direct with vendors you should first see if they are on the Shop@UW website. There are a number of vendors already established here with special contract pricing and the ordering/billing process will be expedited. The following link takes you to the Shop@UW website: http://mds.bussvc.wisc.edu/order/default.asp
When preparing your bi-weekly p-card statement there are some additional entries that should also be made on your statement to help expedite processing, ensure proper account coding and assist with potential audits.
If you have questions regarding a purchase please contact Jan Torkildson before making the purchase.
Preparing Your P-card Statement
P-card statements are generated bi-weekly. You are required to print a copy of the statement and attach receipts for all transactions. In addition, you need to indicate what each charge is for: i.e. Lab Supplies; Office Supplies; Lab Equipment; Human Subject - (indicate the purpose)
Some purchases needing a business purpose indicated (not all inclusive)
Coffee, water and other non-essential break room items are not allowed to be purchased with University of Wisconsin funds. If you are purchasing these items you must indicate the business purpose. For example, water for reception area.
Purchases to be applied to restricted funds (133 and 144), from department stores such as Amazon, Target, Walmart, Costco, Home Depot require a business purpose and how it will be used in conjunction with the terms and conditions of the receiving award.
Your signed p-card statement, receipts and other required supporting documentation should be turned in to the business office by end of day Wednesday during the week the statement is generated.
Some of the items listed below are allowable, some are not, and some are allowable under certain circumstances. Click on blue links for additional details.
NOTE: If you are purchasing airfare and adding personal travel time to a trip you must provide a cost comparison showing what the cost of the airline ticket would have been if you were traveling for just work.
Alcohol / Alcohol is only allowable when purchased for resale or when hosting a conference dinner. The complete guidelines for alcohol purchases can be found in the memo, “Agency Account Usage and Payments for Alcoholic Beverages” at http://www.bussvc.wisc.edu/bursar/nothost2.html. The Alcohol Policy for UW-Madison events can be found at http://www.vc.wisc.edu/alcohol-policy.htm.
Appliances / Appliances (including refrigerators, microwaves, coffee makers, toasters, egg poachers, etc.) for personal use by UW faculty and staff members are not allowable on the purchasing card. All break room appliances must be purchased with personal funds. Appliances purchased for reception areas open to the general public are allowable on the card.
Awards / Awards are something of value conveyed as a result of competition, merit, or in recognition of service to the institution on the part of the recipient. Examples include awards to recognize student achievements, service awards to recognize members of the community, and noncash awards to recognize employees for distinguished service upon retirement or career milestones. Awards to employees cannot exceed $100.00. The use of gift funds is preferred for all award purchases. GPR funds may be used only for awards such as certificates and plaques that have no intrinsic value or a minimal value if the item bears the University logo. No cash awards are allowed. Awards meeting the above definition are allowable on the purchasing card.
Capital Equipment Purchases / Capital Equipment and capital equipment components must be purchased on a requisition so the information can be captured and sent to Property Control. Failure to follow the proper procedures compromises the integrity of the Capital Equipment tracking system. If the cardholder has delegated purchasing authority, the purchase is allowed, however, the cardholder must follow the reporting procedure at: http://www.bussvc.wisc.edu/acct/propcont/prophome.html
and complete the Purchasing Card Capital Equipment Documentation Form at http://www.bussvc.wisc.edu/acct/forms/pcccepd.html.
Catering / The decision to have food at a UW event, either on or off campus, presents a number of concerns including the safe and proper handling of the food, adequate insurance coverage and business procedures that meet the purchasing and accounting processing requirements. The University has established written policies that must be followed when catering food. The guidelines can be found at the following website address, http://www.bussvc.wisc.edu/purch/ppp10.html.
If the outlined requirements are met, the catering may be paid with a purchasing card. All of the required documentation, including a copy of the vendor’s current insurance certificate that has been approved by Risk Management, must be attached to the cardholder statement.
/ Cell Phones / Cellular service and equipment purchases are coordinated by DoIT in accordance with the State of Wisconsin cellular contracts and therefore are not allowable on the purchasing card.
If you are paying for service on your personal contract for business purposes you must pay with personal funds and request reimbursement through e-reimbursement. Receipts reflecting what the charge is for are required and the business purpose should be indicated in the detail of the expense report.
The following link takes you to the P-card Purchasing Policy and Procedure 3.19: http://www.bussvc.wisc.edu/purch/ppp4.html#comm
Computer Equipment, Software, and Click Through Agreements / May require additional approvals.
Restricted/sponsored funds (133, 144) require Special Approval prior to the purchase. An Exception to Cost Principle Approval form must be completed prior to the purchase. The following link takes you to the forms page where you can locate the form: https://www.rsp.wisc.edu/forms/. A copy of the approved budget reflecting the cost allocation must be attached to the form.
Forward the above forms to the Business Office.
The following link takes you to the Policy and Procedure: https://www.rsp.wisc.edu/policies/costaccounting/guidance.html
Software purchases generally require your agreement via a Click Through Agreement and you must seek prior approval. Before making a software purchase you MUST contact Purchasing at 262-6557.
The following link takes you to the Policy and Procedure (see 3.5):
http://www.bussvc.wisc.edu/purch/ppp4.html#license
Note: software purchased through DoIT does not require purchasing contact. The following link takes you to the DoIT website: http://techstore.doit.wisc.edu/
Copiers / The state contract for copy machines is a mandatory contract. All copying needs are to be addressed through the contract vendor regardless of the unit price and whether or not it is a used piece of equipment.
Flowers/
Decorative Items / The purchase of decorative items (plants, paintings, flowers, etc.) from University-administered funds is allowable only if the items are placed in a general reception area frequented by students and/or the general public. Additionally, decorative items may be purchased for an event if the participant’s fees cover payment for the items. The purchase of items placed in employee lounges, assigned offices or other work areas are not allowable on the card.
Food Purchases / Individual meals are not payable on the card. Events that meet the “Headquarters’ City” requirements are payable on the card. To correctly handle expenses associated with a conference or event, the appropriate event form is to be completed and attached to the log/statement. All policy requirements are addressed within the form for your convenience. For further information see Events/Food at http://www.bussvc.wisc.edu/acct/purchcd/tabevents.html
Fuel / External reporting requirements do not allow for the purchase of gasoline on the card; however, gasoline for a rental vehicle is acceptable. The card cannot be used for car fleet fuel purchases. The Voyager Card is provided for that purpose. Fuel purchases for personal vehicles used in lieu of fleet vehicles are included in the established mileage reimbursement rate and as a result are not payable on the card.
Furniture / Furniture such as chairs, tables and storage items need to be purchased from contracted vendors such as Badger State Industries (BSI)
Badger State Industries (BSI) should be the first vendor to be considered. Orders from BSI should be placed through Shop@UW.
The following link will take you to Shop@UW: http://mds.bussvc.wisc.edu/order/default.asp
The following link will take you to the Policy and Procedure: http://www.bussvc.wisc.edu/purch/ipp/ipp26.html#furniture
The following link will take you to the list of contracted vendors: http://www.bussvc.wisc.edu/purch/contract/furncont.html
Gifts / Gifts are a voluntary conveyance of something of value as a gesture of goodwill or appreciation. Gifts from program revenue sources may be given in the following circumstances: 1) to distinguished visitors to campus; 2) to foreign nationals when University personnel are visiting other countries and gifts are necessary, customary and reasonable in cost; or, 3) to recognize contributions of time or funding support by members of the public. Gifts meeting the above criteria are allowable on the card. Gifts of any kind, to an employee, are not allowable on the card. No baby, wedding, birthday or graduation gifts are allowable.
Gift Cards / Gift cards cannot be purchased with a p-card.
The purchase and use of negotiable items, such as gift cards or gift certificates, require strict accountability and are to be used for prizes and awards only. Gift cards are not to be awarded to employees or Nonresident Aliens and cannot be used for the payment of services or other tax reportable transactions. Examples of appropriate gift purchases include an incentive for students to complete a survey or sell the largest number of tickets to an event.
If buying gift cards for human subjects, see Policy:103-Payments to Human Subjects Procedures (http://www.bussvc.wisc.edu/acct/policy/human_subjects/humanpol.html) and 301-Custodian Funds (http://www.bussvc.wisc.edu/acct/policy/ca/capol.html).
The IRS considers gift cards and gift certificates to be cash equivalents, therefore control measures must be in place at the Dean’s Office level to ensure proper use and departmental accountability. The Gift Card Approval Form (http://www.bussvc.wisc.edu/acct/forms/GiftCardApprovalForm.doc) must be signed by the respective Dean’s Office prior to the gift card purchase. In signing off on the form, the Dean’s Office will review and ensure the following:
1. Participants are not frequent gift card recipients, minimizing the risk of non-compliance with IRS tax reporting regulations. Multiple gift cards should not be given to the same individual during a calendar year.
2. The individual making the gift card purchase is accountable for the safekeeping and appropriate documentation of the cards, including the distribution to the recipients.
3. Gift cards purchases are restricted to the purchasing card single transaction limit in amounts of $25.00 or less per individual gift card.
4. Unused Gift Card will be accounted for.
5. Academic based gift cards impact a student’s financial aid, therefore cards purchased are not to be distributed for that purpose. For further information see Accounting Services Policies and Procedures 101.A Departmental Scholarship Authorization at http://www.bussvc.wisc.edu/acct/policy/pir/scholar.html.
Purchases on Grant money must be pre-approved by Research and Sponsored Programs prior to submitting the form into the Dean’s Office for final approval. The Gift Card Recipient Log (http://www.bussvc.wisc.edu/acct/forms/GiftCardRecipientLog.xlsx) is to be used to document the name and contact information of each recipient. All card documentation must be attached to the Purchasing Card Statement of Account Report that reflects the gift card purchase.
Gratuity / Gratuity within reason for a Headquarters’ City conference or event is acceptable on the card if the majority of attendees are not UW employees. If the event consists of mainly UW employees, the gratuity must fall within the individual meal limits.
/ Greeting Cards / Greeting cards of any nature are not allowable on the card.
Holiday Decorations / The purchase of holiday decorations from University-administered funds is allowable only if the decorations are placed in open public areas, such as a student union, student dormitory, student health center or an educational conference center such as UW Extension facilities.
Hospitality Expenses / Hospitality-type purchases such as flowers, greeting cards or graduation expenses are not allowed on the Purchasing Card. Any expense that is to be paid in full or part with Foundation Money cannot be processed on the Purchasing Card. These types of expenses should be processed on a Personal Liability My Corporate Card and reimbursement can be requested via the e-Reimbursement System.
Insurance / Insurance is not an acceptable Purchasing Card purchase. All insurance must be processed through Risk Management.
Student Health Insurance Plans (SHIP) are not payable on the Purchasing Card. Consult the University Health Services (http://www.uhs.wisc.edu/) or SHIP (http://www.uhs.wisc.edu/ship/) website for further information.
Meals / Individual meals are not allowable on the standard purchasing card nor are they allowable on a purchasing card that has been approved for travel.
The individual must personally pay for all meals and request reimbursement in the Expense Reimbursement System (http://www.bussvc.wisc.edu/acct/e-Re/index.html).
If hosting a meal you must complete the appropriate Events form and attach a list of attendees and an agenda.
The following link takes you to the Accounting Service website where you can access the appropriate “Events” forms: http://www.bussvc.wisc.edu/acct/forms.html
Member-
ships / The initial payment of a membership is not payable on the card. The initial membership payment must be submitted on a Direct Payment and routed through the Dean’s Office to obtain Division approval. Subsequent payments, after the approved initial payment, can be made on the card.
The following link takes you to the P-card Purchasing Policy and Procedure: http://www.bussvc.wisc.edu/purch/ppp2.html