Purchasing Card Procedures – September 30, 2014
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PURCHASING CARD PROCEDURES
Procedure
Type:
Management
Initially
Approved:
September 30,
2014
Procedure
Sponsor:
VP, Administrative
Services
Last
Revised:
September 30,
2014
Administrative
Responsibility:
AVP, Finance and
Commercial
Operations
Review
Scheduled:
May 2025
Approver:
Executive Leadership Team
A.
OVERVIEW
Purchasing Cards (P-Cards) are used to improve the efficiency of the purchasing and payment
process for low dollar value purchases. The reduced volume of low dollar value invoices lowers
processing costs while providing faculty, staff and suppliers with a convenient, efficient and cost
effective way to acquire low dollar value goods and services, and is a method for payment for travel
and expenses.
B.
PROCEDURES
1.
SUPPLY CHAIN SERVICES RESPONSIBILITIES
1.1
The Supply Chain Services Department is responsible for the management of the
P-Card program. Supply Chain Services has the authority to design and manage
the P-Card program, practices and procedures, and to perform audits of expenses.
2.
DEPARTMENTAL RESPONSIBILITIES
2.1
Designated Approvers are responsible for the implementation of these procedures.
Further, it is the responsibility of the Designated Approver to share this document
and all related procedures and forms with all faculty/departmental personnel who
are involved in the P-Card program.
2.2
Designated Approvers must:
a.
Be familiar with the current Prohibited and Excluded items list found on the
Supply Chain Services Intranet site.
b.
Adhere to the assigned reconciliation and submission dates.
c.
Have a responsibility to follow the requirements of the following policies
and procedures while making purchases with the P-Card.
i.
Purchasing Policy and Procedures
ii.
Travel and Expense Policy and Procedures
iii.
Hosting Expense Policy and Procedures
iv.
Conflict of Interest Policy and Procedures
v.
Capital Assets Policy
Purchasing Card Procedures – September 30, 2014
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vi.
Management of Microcomputer Software Policy and
Procedures
vii.
Purchase of Computer and Telecommunication Equipment
Policy
viii.
Signing and Contractual Commitment Authority Policy and
Procedures
3.
APPROVAL AUTHORITY
3.1
P-Card applications must bear the Designated Approver's signature.
3.2
Only Designated Approvers are authorized to approve P-Card transactions.
4.
PROHIBITED AND EXCLUDED ITEMS
4.1
Certain items may be excluded from acceptable use for the P-Card. A current list
of Prohibited and Excluded items will be maintained on the Supply Chain Services
intranet site. Refer to this list or contact the P-Card Administrator if you are
uncertain as to acceptable use.
5.
CARDHOLDER AGREEMENTS
5.1
A P-Card Cardholder Agreement shall be completed and signed by the cardholder
prior to receiving their P-Card. Cardholders are to observe the agreement as a
condition of accepting and using the P-Card.
5.2
It is the responsibility of the employee to protect the card from loss or theft. In the
event of loss or theft, the cardholder is to notify the issuing company immediately
and directly (in order to reduce cardholder liability) and to notify the P-Card
Administrator as soon as possible within normal working hours.
6.
RETURN OF CARD TO THE UNIVERSITY
6.1
Supply Chain Services will require the return of a card and/or cancel a card where
the account is consistently not kept on a current basis, when the Cardholder is in
violation of the Cardholder Agreement, or where the issuing company requests the
cancellation or return of the card, or for any other reason.
6.2
The card must be returned to the Cardholder’s Designated Approver upon
termination of employment with the University. The Designated Approver will then
forward the card to the P-Card Administrator for destruction.
6.3
When the card is cancelled for any reason, it is the responsibility of the employee
or Designated Approver to submit the final reconciliation.
7.
PERSONAL PURCHASES
7.1
Purchasing Cards will not be used to purchase any goods or services for the
personal use of Mount Royal employees or students. In the extraordinary
circumstance that an employee incurs a personal charge which is shown on the
monthly statement, it is the responsibility of the employee to identify the item, and
to reimburse the University using the procedures for the Repayment of Non-
reimbursable Expenses.
Purchasing Card Procedures – September 30, 2014
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8.
REWARD POINTS
8.1
Individuals may join loyalty programs and retain benefits offered for business or
personal use provided that there are no additional costs to the University. If an
employee is using any form of affinity card (i.e.: AirMiles, Aeroplan, etc.) for
University expenditures, it is the employee’s responsibility to declare the taxable
benefit upon redemption of their affinity points earned from employer paid
expenses per tax legislation as dictated by Canada Revenue Agency under
Income Tax Bulletin – IT470R – Employee Fringe Benefits.
9.
OUTSIDE OF CANADA TRANSACTIONS
9.1
When ordering goods from outside of Canada, the cardholder can expect to also
pay GST, duty or customs charges on the goods. Cardholders are expected to be
aware of Mount Royal University’s Customs and Brokerage Information on the
Supply Chain Services Intranet site.
10.
CARD AUDITS
10.1
Purchasing Cards will be audited for compliance with processing procedures (e.g.,
timeliness of approvals), and for compliance with University policies and
procedures.
10.2
Abuse of usage of the P-Card and violating the applicable policies and procedures
may result in one or more consequences, including suspension of P-Card
privileges, being required to reimburse Mount Royal University of any unauthorized
purchases/payments, and disciplinary action, up to and including termination.
C.
DEFINITIONS
(1)
Budget Manager:
a Mount Royal University employee with delegated budget
authority for one or more Organizational Units
(2)
Cardholder:
a Mount Royal faculty or staff member whose name appears
on the P-Card
(3)
Designated
Approver:
an employee of Mount Royal who is a Budget Manager
(4)
Low Dollar Value
Purchase:
the purchase of a good(s) and/or service(s) up to an
authorized single transaction limit as defined within the P-
Card program
(5)
Policy:
means the Purchasing Policy
(6)
Purchasing Card
(P-Card):
a credit card supplied by a financial institution and used by
Mount Royal to enable cardholders to make purchases and
payment of low dollar value purchases, travel and hosting
expenses
(7)
Purchasing Card
Administrator:
a Mount Royal employee(s) who has been designated by the
Director of Supply Chain Services to be responsible for the
administration of the P-Card program
(8)
University:
means Mount Royal University
Purchasing Card Procedures – September 30, 2014
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D.
RELATED POLICIES
•
Capital Assets Policy (and related procedures)
•
Conflict of Interest Policy (and related procedures)
•
Hosting Expense Policy (and related procedures)
•
Management of Microcomputer Software Policy (and related procedures)
•
Contractual Signing Authority Policy (and related procedures)
•
Travel and Expense Policy (and related procedures)
E.
RELATED LEGISLATION
F.
RELATED DOCUMENTS
•
Alberta Purchasing Connection Advance Contract Award Notice
•
Canada Revenue Agency Income Tax Bulletin, Employee Fringe Benefits
•
Purchasing Card Procedures
•
Sole/Preferred Source Form
•
Sustainable Purchasing Guidelines
G.
REVISION HISTORY
Date
(mm/dd/yyyy)
Description of
Change
Sections
Person who
Entered Revision
(Position Title)
Person who
Authorized
Revision
(Position Title)
09/30/2014
NEW
01/19/2022
Editorial
Policy Contact &
Related Policies
Policy Advisor
General Counsel &
University Secretary