Policy Title

Policy Purpose

This policy is for purchase cards (P-Card) if granted such use. The purpose of this P-Card Policy is to provide university guidelines for the issuance and use of the P-Card. The Policy will be reviewed for adequacy by the university’s P-Card Program Manager annually.

Policy Scope

This policy applies to all Florida Tech cardholders.

Policy Statement

The Florida Tech P-Card is a purchasing card that may be used by university cardholders for authorized business purchases within the delegated authority limit. Cardholders must follow Florida Tech purchasing policies and strive to obtain the maximum ultimate value for each dollar of expenditure. The P-Card is a tool for purchases of business-related items under the department's single transaction limit in the approved P-Card plan.

The use of the card is beneficial to the department purchaser, the university, and the suppliers. It simplifies the purchasing and payment process and expedites receipt of goods.

For those employees who do not have a P-Card, they may use the departmental card given to the departmental administrator or person of the department head’s choosing. Employees may also reach out to the strategic sourcing team to create a requisition and purchase order. In the event that an employee’s departmental P-Card is at its maximum capacity, the accounts payable department holds a credit card for help with these transactions.

Guidelines

1. Safeguarding of the university’s assets
   1. Rebates or refunds from suppliers shall be the property of the university and shall be paid promptly into the university’s accounts.
   2. Departments will be required to personally reimburse the university for purchases made that are not appropriately documented. Approving officials may be required to reimburse the university if the approving official approved the purchase.
   3. Habitual loss of receipts/documentation may require personal reimbursement by the department and/or approver and may also result in termination of the P-Card.
   4. Items of value purchased for distribution to students are allowed only in support of the educational objectives of the university. Additionally, the cardholder must maintain sufficient documentation to identify the individual receiving an item.
   5. Departments must ensure that P-Cards are promptly cancelled upon employee transfer or termination.
   6. P-Card purchases can only be shipped to Florida Tech addresses.
   7. All items purchased are University property and should be treated as such.
2. Card Issuance
   1. Who - P-Cards will be issued to departmental P-Card coordinators only. No student employees or affiliates may be issued cards. Generally, only one card will be issued per department. Exceptions to departmental P-Cards are listed below under section XVII of this policy.
   2. Authorization - A P-Card Request Form is completed by the department. Spending limits are determined based on anticipated card usage levels, historical spending patterns, and budget limitations.
   3. Distribution – P-Card administrator will notify the department via email when the card has been received.
   4. Review - P-Card administration will review departmental accounts annually to ensure cards are used properly and to evaluate limits and/or whether usage continues to justify the need for a P-Card.
3. Employee Agreement Form
   1. Before being issued a P-Card, a completed Coordinator Agreement Form, signed by the coordinator must be submitted to Business Services.
4. Card Limits
   1. Since Florida Tech, not the department, will pay for the purchases made with the card, controls have been added to P-Card accounts. These limits are imposed at the point of sale when the card is swiped.
   2. University Limits – The P-Card may be used for purchases not to exceed the cardholder’s single transaction or cycle limit in the P-Card Plan.
   3. Cardholder Spending Limits – Adjustable limits per card are:
      • Dollar amount limit per transaction
      • Dollar amount limit per cycle (month)
   4. Merchant Activity Type Limits - Specific types of businesses identified by a Merchant Category Code (MCC) are restricted on the card.
   5. Other Limits- in addition to MCC, other limits are imposed on P-Card purchases for specific items. See Section VI..
   6. .Policy Limits - In addition to the limits that are controlled at the point of sale by the card, Florida Tech limits the use of the card through policy. The card may be used only for purchases made under delegated authority or items exempt from review and approval by the Purchasing Department.
5. Authorized Uses of P-Cards
   All purchases made with a P-Card must be for official university business. Cardholders and approving officials are designated as university purchasing agents.
   1. The P-Card may be used for:
      1. Equipment - Single units under the cardholder’s single transaction limit. Equipment over $10,000 (single unit) is considered a capital asset and is purchased via the Florida Tech’s Workday requisition request.
      2. Supplies - Supplies, materials, and services may be purchased for less than the cardholder’s single transaction limit. The university will monitor activity for purchases for the same supplies, materials, or services from the same supplier so as not to exceed $9,999.99 per year unless competitively procured. Supplies and materials purchased may also include items purchased for resale.
      3. Conferences - Conference registration fees for university personnel on official university business, exclusive of meals paid with the conference registration fees. Departments must ensure that conference registration fees for employees paid pursuant to this section are recorded as required by the university’s travel policy. (Approved Workday Spend Authorization-prior to travel) Cardholders are required to capture the aforementioned registration expenses for the employee’s travel expense statement, clearly identifying those items paid with the P-Card versus those items requiring reimbursement.
      4. Students - An approved spend authorization (prior to travel) in Workday by the cardholder paying for student meals and travel is required.
      5. Repairs and maintenance - Repairs and maintenance of university vehicles are permitted.
      6. Professional Memberships and Training – Membership and/or training directly related to an employee’s position.
      7. Services – All other services that do not cross the competitive bid policy threshold.
6. Prohibited Use of P-Cards
   
   1. The P-Card may not be used for:
      1. Personal items. The use of the P-Card for personal expenditures is strictly prohibited. Cardholders who violate this rule must reimburse these funds within 7 business days and, if the violation is determined to be intentional or occurs often, may be subject to both losses of P-Card use, employment and criminal penalties.
      2. Alcoholic beverages or tobacco products
         1. Alcoholic beverages for certain business-related situations are permitted with prior Presidential approval.
      3. Prescription drugs, medical gases, controlled substances, regulated materials, live animals, non-taxable high-proof ethyl alcohol, radioactive materials, and safety critical equipment. (See definitions in Section XVIII)
      4. Motor vehicle fuel (except for authorized rental and university vehicles).
      5. Gift cards, prepaid cards, calling cards, gift certificates, or other cash equivalent items.
      6. Cash advances, cash refunds, or “store credit”
      7. Memberships and/or fees to wholesale shopping clubs or “warehouse type” retailers (e.g. Sam’s, Costco, Amazon Prime)
      8. Purchases made from internal university units. No internal university charges are allowed on the P-Card. This includes, but is not limited to, Barnes and Noble Bookstore, Florida Tech Copy Center, Evans Library, and Florida Tech Security Parking.
      9. Split purchases. Dividing one purchase into two or more to circumvent the single transaction limits and procurement requirements previously outlined is not allowed. For example, more than one transaction to the same supplier on the same day which exceeds the single transaction limit of the cardholder is prohibited.
      10. Sales tax. Sales tax should not be paid for purchases made from suppliers within the States of Florida, Alabama, New Jersey, Virginia, and Illinois using university funds. Sales tax may be paid when required for suppliers for states other than listed above.
      11. Deposits – All deposits should be entered into Workday against a valid supplier.
      12. Credit Card Fees – The supplier being paid should not charge credit card fees. Fees for foreign transactions are approved for payment.
7. Limitations on Suppliers
   1. High Risk Suppliers:
      1. Florida Tech does not allow the use of high-risk suppliers such as eBay. If no other form of supplier is available for required purchases, the P-Card High Risk Supplier Purchase Authorization Form must be completed, signed, and approved prior to each purchase and appended with the receipt as part of the expense report entered in Workday. Violations of policy will be evaluated as noted in the Violations of Policy section of this policy.
   2. Additional Restrictions
      1. Cardholders are prohibited from making purchases from suppliers where the cardholder has a financial interest.
      2. Cardholders are prohibited from accepting any gift or gratuity from any source when it is offered, or appears to be offered, to influence your decision-making regarding P-Card purchases.
      3. Cardholders are prohibited from linking P-Cards to Paypal, Applepay, Google Pay and other payment portals.
8. Cost Allocation
   1. Each card will be assigned a default departmental cost center, as identified on the P-Card Request Form, to which transactions will be automatically charged.
9. Training
   1. Department P-Card coordinators are required to complete the annual P-Card Training. Cardholders are required to re-certify annually. Failure to re-certify will result in card suspension until the re-certification is completed.
10. Card Security
    1. The cardholder should use basic security measures, as outlined below, to prevent unauthorized use and limit the potential for fraud.
       1. Always keep P-Cards and account numbers in a secure place.
       2. Safeguard the P-Card as you would your personal credit card.
       3. Be aware of your surroundings when using the card.
       4. Reconcile and submit weekly statements in a timely manner.
11. Lost or Stolen Cards
    1. Lost, stolen, or fraudulently used P-Cards must be reported to JP Morgan at (1-800-316-6056 or the number listed on the back of your card) as soon as possible after discovering the loss, theft, or fraudulent use. The cardholder’s approving official and the P-Card administrator must also be notified. Evidence of fraudulent use will be requested to include transaction details. Lost or stolen cards require card cancellation. Failure to report the loss, theft, or fraudulent use of the P-Card to the bank and P-Card administrator may result in increased financial loss to the institution.
    2. The P-Card coordinator has the responsibility for communicating the information to the P-Card administration.
12. Surrendering a Personal P-Card
    1. The P-Card is the property of Florida Tech. The individual cardholder is to surrender the P-Card to the P-Card administrator upon request, retirement, termination, or transfer to another department. The issuance of P-Card’s is at the sole discretion of Florida Tech and Florida Tech may recall the P-Card for any reason at its sole discretion.
    2. The P-Card administrator shall destroy (cut up) the card and cancel the P-Card.
13. Surrendering a Departmental P-Card
    1. The P-Card is the property of Florida Tech. The Department is to surrender the P-Card to the P-Card administrator upon request. The issuance of P-Card’s is at the sole discretion of Florida Tech and Florida Tech may recall the P-Card for any reason at its sole discretion.
    2. If the departmental P-Card coordinator changes departments or resigns, the P-Card shall be surrendered to the P-Card administration so the new departmental P-Card holder can be officially recorded.
14. Documentation Requirements
    1. Spend Authorization for Travel: Unless covered by an approved exception, every purchase requires an approved spend authorization prior to travel.
    2. Receipts: For each transaction, accountable documentation (i.e. a detailed sales draft or receipt) must be obtained as proof of purchase and forwarded to the department's administrator. This documentation will later be used to verify the purchases shown on the cardholder's transaction in Workday. The documentation must contain line-item description and line-item pricing for the purchase. The documentation must include:
       1. Supplier name
       2. Transaction amount
       3. Date of the purchase
       4. Itemized list of items purchased
       5. Other information as required by the department
15. Maintaining P-Card Documentation
    1. Documentation will be retained in accordance with records retention and fund requirements. This documentation will be housed in Workday.
16. Compliance Reviews
    1. Business Service and Internal Audit Reviews: Transactions will be reviewed online in accordance with plans on file with Business Services and Internal Auditing. .
17. Department P-Card Exceptions
    1. The University reserves the right to make exceptions for those departments that have a high rate of travel and research expenditures. Exceptions will be made on a case-by-case basis. All requests for exceptions must be approved by the President, Provost or CFO. In these cases, individual P-Cards will be distributed and must follow the same restrictions as stated above.
18. Definitions
    

    Approver - The non-subordinate employee designated by the unit to review and verify cardholder transactions.

    Billing Address - The campus ordering address of the individual/departmental cardholder. Address should include mail code. The billing address may be requested by suppliers for order verification.

    Strategic Sourcing and Business Services – The Florida Tech organization responsible for the overall administration of the P-Card Program.

    Billing Date (Bank Posted Date) – The date the supplier transmits the cardholders purchase information to the bank for posting to the cardholders P-Card account (Not necessarily the date the cardholder made the purchase). Visa’s supplier contract requires account billing upon shipment of an order.

    Billing Phone Number - The campus phone number of cardholder may be requested by suppliers for order verification.

    Cardholder – Department, or individual in case of an exception, issued a P-Card.

    Card Issuer – JP Morgan, the bank issuing Florida Tech’s P-Card.

    Cycle Cutoff - The date the monthly statement is issued, the last day of each month.

    Department Head - For purposes of these instructions refers to the VP, Dean, Director, or Department Head with budget authority for the purchasing unit. This authority cannot be delegated.

    Director of Business Services – Responsible for the acquisition of goods and services at Florida Tech.

    Employee Agreement Form - The written agreement between Florida Tech and the cardholder.

    Forms and Manuals – Forms and user manuals are available online at the Procurement and Strategic Sourcing Services website at http://fu1.hbweilan.net/policies/procurement-services/purchasing/procurement-card-rules--guidelines/ . Revisions to the forms and manuals may be frequent. All employees should check the website often for current versions
    
    P-Card administration – Procurement and business services unit that manages the day-to-day operations of the university P-Card program.

    P-Card program manager - Procurement and business services representative responsible for P-Card program. Serves as the university official liaison.

    P-Card administrator – Procurement and/or business services representative that assists P-Card program manager administer P-Card program.

    P-Card coordinators - Department representatives responsible for facilitating the procurement card program within their departments.

    P-Card helpdesk – P-Card administration point of contact to assist with questions/concerns, available via phone at 321-674-7342 or e-mail at P-Card.ask@.hbweilan.net.

    Florida Tech E-Procurement System - Workday contains online records of P-Card transactions, which are verified and reconciled by cardholders. Transactions are then approved via automated approval workflows.

    Regulated Materials - any item or agent (biological, chemical, radiological and/or physical) which has the potential to cause harm to humans, animals, or the environment either by itself or through interaction with other factors. They are materials that present special safety risks during transport, storage, use or disposal. Examples of hazardous materials requiring pre-order approval include (but not limited to): highly reactive/pyrophoric compounds, toxic compressed gases, highly toxic chemicals, Occupational Safety & Health Administration (OSHA)-regulated chemicals select agents as defined by CDC/USDA, other human pathogens, and other high hazard compounds.

    Safety Critical Equipment - equipment, structure or system whose failure could cause or contribute to a major accident, or whose purpose is to prevent or mitigate the effect of a major accident that can present safety hazards to users (e.g., X-ray and laser equipment) as well as equipment used to control exposures to recognized hazards, and whose improper use could subject users to harm (e.g., fume hood).

    Non-Taxable high-proof ethyl alcohol - regulated by The Alcohol and Tobacco Tax and Trade Bureau (TTB). Note: this agency falls under the U.S. Department of Treasury.

    Prescription Drugs, Medical Gases, and Controlled Substances - prescription drugs and medical gases, and controlled substances covered by this policy are substances used in teaching, research, and testing that are overseen by the Florida Department of Business Regulation (DBPR) and listed by the U.S. Department of Justice (DOJ) and Drug Enforcement Administration (DEA), respectively.

    Radioactive Materials - by-product, source, special nuclear, accelerator produced, generally licensed, are naturally occurring material whose purchase and use is licensed by the US Nuclear Regulatory Commission (NRC) or their designee the Florida Department of Health (FDOH). These radionuclides may emit alpha, beta, gamma, or X-rays, neutrons, or other emissions.