purchasing card program guide - procurement …...stacy sassman, interim associate director of...

Purchasing Card Program Guide

Revised November 2015

Purchasing Card Program Guide i Revised November 2015

IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMTableofContents

ProgramPoliciesandProcedures Page

I. Introduction‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 1

II. Financialpolicy‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 2

III. Howitworks‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5

IV. Applicationprocess‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 5

V. Orderingprocess‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6

VI. Proofofpurchasedocumentation‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 7

VII. Transactionreconciliation‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8

VIII. Segregationofduties‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 8

IX. Transactiondiscrepancies,disputesandfraud‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9

X. Reportingalostorstolencard‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9

XI. Employeetransferortermination‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9

Appendices

I. GeneralrulesforISUfunds‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 10

II. Expendituresinvolvingfoundationfunds‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 14

III. Vendingaccountusage‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 15

IV. Iowagiftlaw‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 16

V. Communicationtechnologyallowance‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 18

VI. Salestaxexemption‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 19

VII. Forms‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 20

VIII. Additionalresources‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 21

Purchasing Card Program Guide ii Revised November 2015

Purchasing Card Program Guide 1 Revised November 2015

IOWASTATEUNIVERSITYPURCHASINGCARDPROGRAMProgrampoliciesandprocedures

I. Introduc on TheIowaStateUniversitypurchasingcardprogramhasbeendesignedtoallowfortheprocurementoflow‐dollarsuppliesbytheenduserthroughtheuseofacreditcard.Theintentistoeliminatetheneedforsmalldollarpurchaserequisitions,vouchersandreimbursements.Thepurchasingcardprogramisdesignedtoimproveef iciencyinprocessingandcompletinglow‐dollarpurchasesofapprovedcommoditiesfromvendors/suppliersthatacceptaVISAcreditcard.Forthecardholder,usingthePurchasingCardwillprovidequickerturn‐aroundtimeonorders,widespreadacceptancebyvendors,andreducedpaperworkprocessing.ThePurchasingCardconceptisdesignedtodelegatetheauthorityandcapabilitytopurchaselow‐dollaritemsdirectlytotheenduser.ThestandardPurchasingCardmaybeusedforpurchasesofallnon‐restricted(acceptable)commodities(seeSectionII.4.–FinancialPolicy).ThePurchasingCardwithhospitalityrightsmayalsobeusedforpurchaseslistedinSectionII.3.–FinancialPolicy.EachPurchasingCardisissuedtoanamedindividualandtheUniversityisclearlyindicatedonthecardasthecorporatebuyerofproductsandservices.ThePurchasingCardisnottobeusedforpersonaltransactions.Thisprogramwillenableyoutopurchaseapprovedcommoditiesdirectlyfromvendors/suppliers.PaymentforallPurchasingCardtransactionsisperformedelectronically,whicheliminatestheneedtoprocessvendorinvoicesandtoissuechecksforpaymentofeachinvoice.WhenusingthePurchasingCard,chargesmaybedistributedamongmultipledepartmentalaccountandexpenseobjectcodecombinations.Purchasing,accounting,andtheinternalauditof icewillmonitortheperformanceofthePurchasingCardProgram.Questionsorconcernsregardingpolicyshouldbedirectedto: CoryHarms,InterimDirectorofPurchasing 515‐294‐2591 clharms@iastate.eduQuestionsaboutPurchasingCardprocedureorthereconciliationsystemshouldbedirectedto: Purchasinghelpdesk 515‐294‐1308 [email protected] LesleyLackore,ProgramAdministrator 515‐294‐4589 [email protected] ShariRussell,ProgramCoordinator 515‐294‐4573 [email protected] StacySassman,InterimAssociateDirectorofPurchasing 515‐294‐9390 [email protected] ShandraVanBerkum,ProgramAssistant 515‐294‐1308 [email protected]


Equipment Itemsvaluedat$5000ormore,tagablefor

inventory,withausefullifeof1+year Automaticelectronicde ibrillators(AEDs) Computers(servers,desktops,laptops,tablets,iPads) Copiers Drones/UnmannedAerialVehicles(UAVs) PurchasesinvolvingtradeofISUproperty Telephones,cordlesstelephones,IPphones,cell

phonesandrelatedequipment(exceptfromcontractedvendors)

Travelexpenses Airlinetickets Hotelrooms(includingreservationofrooms) Meals Carrentals Parkingfees Gasolineandfuel

ToexternalvendorsforitemsavailablethroughUniversitystores,services&thecyBUYContractMarketplace

Printingandphotocopying Businesscardsandletterhead Postalandparcelservices Photocopiersupplies(includingtonercartridges) Cylindergasesandliquidnitrogen

Personalitemsandgifts Itemsforpersonaluse Giftsbene itinganindividualemployee(ifthe

fundingdoesnotallowsuchpurchases) Donations

Services Servicesrequiringasignedcontract Rentalofhigh‐value(>$5000)orhigh‐risk

equipment Constructionservices&repairoffacilities Professionalservices Movingservices(employeerelocation) Telecommunicationservices(exceptfromcontracted

vendors)

Itemsrestrictedduetostandards/reportingissues Packagealcohol Controlledsubstances Computers(servers,desktops,laptops,tablets,iPads) Firearms,weapons,andammunition Furniture,furnishings,andartwork

(exceptfromcontractedvendorthroughAccessPlus) ItemsforCampusOrganizations Itemsfromcon lictofinterestvendors Itemsfromon‐lineauctions Laboratoryanimals,livestock,animalcagesand

aquariums Leases/rentaloflandand/orof icespace Pharmaceuticalsanddrugs Radioactivematerialsandhazardousmaterials

Additionalrestrictionsforcardholderswithouthospitalityrights

Hospitalityexpenses Mealsandfoodforconsumption Entertainmentexpenses Interviewexpenses HotelroomsforvisitorstotheUniversity

II. Financial Policy

1. ThePurchasingCardisavailabletoallfacultyandstaffofIowaStateUniversitywiththeapprovaloftheirrespectivedepartmentchairordirectoranddean,vice‐presidentorprovost.AllcardholdersmustsignandacceptthetermsandconditionsoftheIowaStateUniversityPurchasingCardProgramCardholderAgreementandtheStatementofPurchasingCardReceipt.

2. CardholdersareexpectedtopurchaseitemsthatarestockedatUniversityStoreswheneverpossible

unlesssubstantialsavingscanberealizedthroughcyBUYorotherUniversitycontracts.ItemsandservicesfromvendorsthatholdcompetitivelybidcontractswithISU(e.g.of icesupplies,computeritems,scienti icandresearchsupplies,copiers,tentrentals,etc.)shouldbepurchasedoncyBUYorontheUniversitycontractswiththevendorratherthanfromvendorsthatcompetedirectlywiththosecontracts(seehttp://www.purchasing.iastate.edu/contracts/).VendorsthatcompetedirectlywithcyBUYvendorsorUniversitycontractsshouldonlybeusedaftercontactingthePurchasingDepartment(515‐294‐[email protected])forapproval.

3. ThePurchasingCardmaynotbeusedforthefollowingtransactions:


4. AllpurchasetransactionsprocessedagainstthePurchasingCardmustbemadebytheindividualtowhomthecardisissued.Thecardistobeusedonlybythenamedcardholderandisnottobeloanedtoanotheremployee,orotherperson.Thecardholderhasfullliabilityforanyimproperchargesthatresultfromallowingotherstousethecard.

5. Attimes,Universitypurchasesmayresultincashorcash‐likeincentives.Thecashand/orincentivesare

thepropertyoftheUniversityandmaynotbeusedforpersonalgain.Examplesofsuchincentivesinclude,butarenotlimitedto:rebates,giftcards,two‐for‐onepurchasesandspendrewards.TheUniversityrecommendsthatcardholdersnotparticipateinthesepromotionaloffers.Itistheresponsibilityofthecardholder’sdepartmenttobeassuredthatanymonetaryorcashincentiverewardreceivedasaresultofanIowaStateUniversitypurchasebecomesthepropertyoftheUniversity.

6. ThePurchasingCardmaybeusedforconferenceregistrationfees.Feesforoptionaleventssuchastours,

golfoutingsandothersimilareventsthatarenotincludedwiththenormalregistrationareconsideredpersonalandarenottobechargedtotheCard.Thesefeesshouldbepaidforpersonallyandsubmittedforreimbursementwhenappropriateandallowable(maximummealrateswouldapply).Theobjectcodeforregistrationexpensesmustbe23200(domestic)or23300(foreign).DuesormembershipsmayalsobepaidwiththeCardprovidingsomebene itisderivedbyISUasaresultofthemembership(seeUniversityPolicyLibrary,policy.iastate.edu/policy/memberships/,forfurtherinformation).Theobjectcodemustbe38200fortheseexpenses.Golf,airlineclubsandsimilarmembershipsarenotallowable.ThepurchaseofmembershipssuchasAmazonPrimeisconsideredarewardprogram(seenumber5above)andnotallowablebecausethesemembershipsarenotlimitedtoISUbusinessonlyandcanbeusedforpersonalpurchases.Journalreprints,classi iedadvertising,andsubscriptionsmaybepaidwiththeCard.

7. TheUniversityhasauthorizedtheuseofthePurchasingCardformeeting,event,andhospitalityexpensesuptothecardholder’sauthorizedsinglepurchaselimit.Existingcardholdersmayrequestacon igurationchangetotheirPurchasingCardbyhavingtheirdepartmentchairordelegatedp‐[email protected].

Hospitalityexpensesareallowedprimarilyforthosefunctionswithanexplicitbusinesspurposewhichincludenon‐employees.UseofUniversityfundsforemployeefunctionsisallowableonlyinaccordancewiththeGeneralRulesforISUFunds,publishedbythecontroller’sdepartmenton4/3/2014(SeeAppendicesSectionI‐GeneralRulesforISUFunds).Thecardholdershallprovidetotheircardvalidatordocumentationregardingthebusinesspurposeofallhospitalitytransactions,includingbeginningandendingdates,location,eventtype,andnamesofparticipants.ThisinformationisrequiredforcompliancewithIRSregulationsandmustbeprovidedinordertocompletetheon‐linereconciliationprocess.

Acceptableusesinclude: Annualstaffretreats Eventsforstudentrecruitment/retention Meals/hospitalityforpositioninterviewees/candidates Meals/hospitalityforvisitingspeakers Meals/hospitalityforothervisitors/meetingattendees EducationaldevelopmentseminarsandconferenceexpenseshostedbyISU Lodgingfornon‐employeesvisitingISU Meetingroomexpenses


WhiletheUniversityrecommendsISUCateringforcateringneeds,alistofotherauthorizedcaterers/vendorsforISUdepartmentsandorganizationstoselectfromwhenholdingeventsatISUmaybefoundathttp://www.riskmanagement.iastate.edu/food.Withregardtopurchaseofalcoholicbeverages,pleaserefertoUniversitypolicy.WhenthePurchasingCardisusedformeetingandhospitalityexpenses,thefollowingobjectcodesshouldbeused:

24100 Travel‐Domestic‐Nonemployee24200 Travel‐Foreign‐Nonemployee36100 HospitalityforSeminars/Events/Conferences36200 HospitalityforMeetings‐ISUStaffOnly36300 HospitalityforRecruitment36400 HospitalityforFundraising36500 Alcohol36900 OtherHospitality

Pleasenote:TravelexpenseswillnotbeanacceptableuseofthePurchasingCardandwillcontinuetobetheresponsibilityoftheUniversityemployee,andreimbursablebyprocessingarequestthroughtheemployeereimbursementsystemforassessmentoftaxablemeals.

8. PurchasingCardtransactionsfornon‐restricted(acceptable)commoditiesmaynotexceedthe

cardholder’sauthorizedsinglepurchaselimit,includingalldelivery,shippingand/orhandlingcharges(seeSectionV—Orderingprocess).

9. Purchasesmustbefortheuseandbene itoftheUniversity.NOPERSONALPURCHASESAREALLOWED.

PersonalpurchasesmadewiththePurchasingCardmustbechargedtothecardholder’sU‐Billbythereallocatorusingtheon‐linereconciliationsysteminAccessPlus.

10. Itisthecardholder'sresponsibilitytoprovideallreceiptsanddocumentationtothecardvalidatorto

maintainforthedepartmentforone(1)yearfromthetransactiondateinpaperform,thenforanadditionalnine(9) iscalyearsinthep‐cardattachmentimagingsysteminaccordancewiththeUniversity’sRecordRetentionPolicy.Thecardholdershallprovidedocumentationregardingthebusinesspurposeofalltransactions.Forhospitalitytransactions,thecardholdershalladditionallyprovidetheeventtype,beginningandendingdates,location,andnamesofparticipants.

11. Itisthecardholder'sresponsibilitytoreportalostorstolencardimmediatelyto:

thePurchasingCardProgramAdministratorat515‐294‐4589,and theISUPublicSafetyOf iceat515‐294‐4428.

12. Itisthecardholder'sresponsibilitytorequestexemptionofsalestaxthroughtheproperuseofthe

University'ssalestaxexemptionnumber.13. ThecardreallocatorisresponsibleforensuringthattheproperUniversityaccount(s)andexpenseobject

code(s)arechargedforpurchases.Anyaccountmaybeusedforreallocation,withtheexceptionofCampusOrganizationaccounts(206‐00‐35).

14. Itisthedepartment'sresponsibilitytoattempttoresolveadiscrepancywithavendorwithinten(10)

daysofreceiptofpurchase.Ifaresolutionisnotpossible,thedepartmentmustcontactthePurchasingCardProgramAdministratorwithsupportinginformationwithinthirty(30)daysofthetransactionpostdate.


15. ViolatinganyofthesepoliciesmayresultintheimmediateterminationoftheprivilegetousethePurchasingCard.Non‐adherencetoanyoftheproceduresenumeratedintheAgreement,theUserGuide,ortheStatementofPurchasingCardReceiptwillresultinrevocationofindividualcardholderprivilegesandmayresultinrevocationofalldivisionordepartmentalPurchasingCards.

16. FraudulentuseofthePurchasingCardwillresultindisciplinaryactioninaccordancewiththepoliciesof

ISU’sHumanResourceServices. III. How it works ThePurchasingCardProgramsimpli iesthepurchasing/disbursementprocessbyfacilitatingpoint‐of‐saleprocurement.Purchasingresponsibilityisdelegatedtotheorderingdepartment,enablinganauthorizedcardholdertoplaceanorderdirectlywithavendor/supplier.ThePurchasingCardProgramprovidesenhancedcontrolforalltransactionsbyproducingimmediatedecisionsonthree(3)speci icauthorizationcriteriaasexplainedbelow.Whenapurchaseauthorizationisrequestedbyavendor/supplieratthepointofsale,theVISAsystemvalidatesthetransactionagainstpre‐setlimitsestablishedbythepurchasingdepartmentinconjunctionwithdepartmentadministrators.AlltransactionsareapprovedordeclinedbasedonthefollowingPurchasingCardauthorizationcriteria:

Singlepurchaselimit,nottoexceed$4,900. Spendinglimitpermonthlycycle,upto$15,000. Approvedmerchantcommoditycodes.

IV. Applica on process CompletionoftheIowaStateUniversityPurchasingCardProgramonlineapplicationbytheapplicant’sdepartmentp‐cardcoordinator,andattendanceatanorientationsessionarerequiredtoobtainaPurchasingCard.ThecardisavailabletoallfacultyandstaffofIowaStateUniversitywiththeapprovaloftheirrespectivedepartmentchairordirectoranddean,vice‐presidentorprovost.

GraduateassistantsmaybeeligibletohaveaPurchasingCardasauthorizedbythedepartmentchairordirectoranddirectorofpurchasing.Casualhourly(XH)employeesarenoteligibletohaveaPurchasingCard.YourpersonalcredithistorywillinnowaybeaffectedbytheISUPurchasingCard.Monthlystatementswillbepaiddirectlybyelectronicfundstransfer.EachnewPurchasingCardissuedwillbesenttothepurchasingdepartment.Cardholdersandindividualsassignedtocompletetheonlinereconciliationprocessarerequiredtoattendanorientationsession.

Existingcardholderswithouthospitalityrightsontheircardwhowanttousethecardformeeting,event,andhospitalityexpensesmusthavetheirdepartmentchairordelegatedp‐[email protected].


V. Ordering process

ThePurchasingCardProgramprovidesanotheroptiontotheexistingpurchasingproceduresregardingtransactionsforgoodsvaluedat$4,900orless(includingalldelivery,shipping,etc.).Nosinglepurchaseistoexceedthecardholder’ssinglepurchaselimit($4,900orless).Makingmultipletransactionstothesamevendoronthesamedatetobypassacard’stransactionlimitisaviolationoftheCardholderAgreementandStatementofReceipt,signedbythecardholder.Anyevidencethatacardholderhasusedtheseorothermeanstoavoidthetransactionlimitmayresultinthelossofpurchasingcardprivileges.Purchasesofrestrictedcommoditiesandpurchasesofmorethan$4,900shouldcontinuetobeprocessedinaccordancewiththeestablishedprocurement/disbursementpoliciesandprocedures.Additionalinformationaboutprocurementproceduresmaybefoundatthepurchasingwebsite,http://www.purchasing.iastate.edu/.PleasebecertaintofollowtheseprocedureswhenusingthePurchasingCard:

IdentifyifthepurchaseisappropriateforaPurchasingCardtransaction.Checkthelistofrestrictedcommodities.

Determineifyourtransactiontotalislessthanyourauthorizedtransactionlimit.Ifnot,the

transactionmustbeprocessedinaccordancewithestablishedpurchasing/disbursementpoliciesandprocedures,andthecardmaynotbeutilized.

Contactthevendor/supplierand:

StatethatyouarefromIowaStateUniversity,andyouwillbemakingaVISApurchase.

E U ! Ifthevendor/supplierrequeststheUniversity'ssalestaxexemptnumber,pleaseprovide

theappropriatenumber: SalesTax: 1‐85000775M FederalExciseTax 42‐70‐0066Y Ifthevendor/supplierrequestsaUniversitysalestaxexemptcerti icate,contactthe

PurchasingDepartmentat515‐294‐1308. Placeorder. Givevendor/supplierthePurchasingCardnumberandexpirationdate,andCard

Veri icationValue(CVV),ifrequested. Givevendor/supplieryourname,thedepartmentname,andcompletedeliveryaddress.

(Pleaseprovidecompleteshippingaddress,includingbuildingname,roomnumber,andstreetaddresstoinsureproperdelivery.)Ifthevendorasksforthestatementorbillingaddress,itistheaddressonyourcardstatement(generallyyourdepartmentadministrativeof ice).Contactthepurchasinghelpdeskat515‐294‐[email protected] icinformation.


Makesurethattheappropriatedepartmentalpersonnelareawareofyourpurchase,andthatyouhavefollowedalldepartmentalprocedures,includingUniversityrecordretention/documentationrequirements.

Whenreceivingashipment,itistheresponsibilityofthecardholdertopromptlyinspectthe

shipmentinaccordancewithreceiptandinspectionofpurchasedgoods.Incaseofreturns,thecardholderisresponsibleforcoordinatingthereturndirectlywiththevendor/supplierandforcontactingthePurchasingCardProgramAdministratorwithanyunresolvedissues.

Anitemizedcardreceiptmustberetainedaspartofthepurchasetransaction

documentation,asnotedinSectionVI. VI. Proof of purchase documenta on ThePurchasingCardProgramfacilitatespoint‐of‐salepurchases,givingauthorizedcardholderstheabilitytopurchasespeci icgoodsdirectlyfromavendor/supplier.ThePurchasingCardwilleliminatethetimeandeffortspentonprocessingrequisitionsandotherinternalforms, ilingofpurchaseordercopies,distributionandthe ilingofmultiplepaymentvouchers.Withthisauthoritycomestheresponsibilityformaintainingadequatedocumentationatthesourceofthetransaction(withinthecardholder’sdepartment).Itistheresponsibilityofeachdepartmentand/orunittoretainitemizedreceiptsforpurchasingcardtransactionsinaccordancewiththeUniversity'sRecordsRetentionPolicy.OriginaldocumentationMUSTbemaintainedatitssourceandMUSTsupportanauthorized(acceptable)businesspurposeforalltransactionsmadewiththePurchasingCard.Forhospitalitytransactions,thecardholdershalladditionallyprovidetheeventtype,beginningandendingdates,location,andnamesofparticipants.Documentationistobemaintainedforten(10)years(seeSectionII, ).Effective3/1/2014,PurchasingCardreceiptsmustbeuploadedtotheassociatedtransactionintheAccessPlusp‐cardsystem.Supportingdocumentationmightincludethefollowing:

Itemizedcashierreceiptorvendor/supplierinvoice,showingthechargeshavebeenpaidbyusingthecard.

Copyofanitemizedordercon irmationorapplicationwhenavailable. Packingslip(forgoodsreceived). Copyofregistrationform. Certi icateoflostreceipt(seeAppendicesSectionVII‐Forms).

Transactionswillbesubjecttoauditbythepurchasingdepartment,thecontroller’sdepartment,internalauditandStateofIowaauditors.


VII. Transac on reconcilia on Theon‐linereconciliationsystemreceivesdailyelectronictransmissionsfromthecreditcardcompanyshowingpostedcardtransactionsbycardholder.

Thepersondesignatedtovalidatetheaccuracyandreceiptoftheitemsassociatedwiththatcard(thevalidator)willbenoti iedbye‐mailthattheyhaveoneormoretransactionstoreview.

Oncevalidated,thetransactionisroutedelectronicallytosomeonewhocanassignorreallocatethecorrectaccountnumbersandobjectcodesplits(wherethisisnotthesamepersonasthevalidator).

Thetransactionwillthenbeforwardedelectronicallytoapersondesignatedtoserveastheapprover,whowillapproveorrejectthetransaction.

Onceapproved,thetransactionismovedintotheaccountingsystemandappearintheKualiFinancialSystem(KFS).

Keepinmindthatthevendorispaidonthepostdate,andthemonthlystatementwillbepaidregardlessofincorrecttotalsordisputedcharges.Donotignorethetransaction(seeSectionIX‐Transactiondiscrepancies,disputes,andfraud).Credittransactionsfordisputedchargeswillbeprocessedinthesamemanneraschargesandre lectedonsubsequentstatements.Remindermessageswillbesentbye‐mailtobothcardholdersandsystemuserswhentransactionshavenotbeencompletedintheon‐linereconciliationsystemwithin30daysofthepostdate.CardholdersmayreviewtheirtransactionsviatheP‐card‐CardholdersystemundertheuBusinesstabinAccessPlus,orcontacttheircardvalidator/reallocatorformoreinformationaboutthestatusofanyoverduetransactions.

VIII. Segrega on of du es Anappropriatesegregationofdutiesrequiresthatatleasttwopeoplearesubstantiallyinvolvedinatransaction.Substantialinvolvementmeansthatapersonotherthanthecardholderisreviewingcardtransactionsforappropriateness,allowability,fundingsource,andbusinesspurpose.Inthepurchasingcardsystem,thissegregationofdutiesmaybeaccomplishedinoneofthefollowingways:

Haveapersonotherthanthecardholdervalidateandreallocatethetransaction. Havetheapproverreviewallp‐cardreceiptsorotherproof‐of‐purchasedocumentation. Utilizeanddocumentpre‐authorizationforp‐cardtransactions.

Thepurchasingdepartmentrecommendsthatdepartmentsadoptthefollowingproceduresaspartoftheirp‐cardprocess:

First,thattheapproverseethereceiptorotherproof‐of‐purchasedocumentationforallpurchasesthattheyapprove.

Second,thattheoriginalreceiptforallp‐cardtransactionsforadepartmentbekeptinacentrallocation.Thereceiptsshouldnotbekeptinthecardholder'sdesk,forexample,butinalocationaccessibletoapprovers,auditors,andotherstoreview.

Thepurchasingdepartmentwillconductauditsofthedepartmentalp‐cardprocess,includingappropriatesegregationofduties,retentionoforiginalreceiptsinacentrallocation,andtheapprovalprocesswithregardtoreceipts.


IX. Transac on discrepancies, disputes, and fraud UnauthorizedtransactionstounknownvendorsshouldbereportedtothePurchasingCardAdministratorimmediately.Forunrecognizedorincorrecttransactions,thedepartmentshould irstseekresolutionwiththemerchant.Shouldthisproveunsuccessful,thedepartmentshallcontactthePurchasingCardProgramAdministratorwithsupportinginformation.AlldiscrepanciesshallbecommunicatedtothePurchasingCardProgramAdministratorwithin30daysofthepostdate.Yourrequestwillbeinvestigated,and,ifresolutioncannotbeachievedwiththemerchant,sentdirectlytoUSBankforreview.Oncethechargeisdisputed,USBankwillsuspendthechargeandrequestdocumentationfromthemerchant.Ifthemerchantfailstoprovidesuitabledocumentationwithinforty‐ ive(45)days,thedisputedamountwillbecreditedonthenextstatement.Transactionssixty(60)dayspastthestatementdatecannotbedisputedwithUSBankandwillbetheresponsibilityofthecardholder’sdepartment.

X. Repor ng a lost or stolen card IfaPurchasingCardislostorstolen,thecardholder P C A at515‐294‐4589.ItisalsotheresponsibilityofthecardholdertoreportthelossofaPurchasingCardimmediatelytoISU’sPublicSafetyOf iceat515‐294‐4428.Thecardholder’sdepartmenthasfullliabilityforanychargestothecard,priortothetimeitisreportedlostorstolen.ShouldyouneedemergencyassistancefromVISAthatUSBankisunabletoprovide,VISAmaybecontactedat1‐800‐847‐2911.

XI. Employee transfer or termina on TheemployeeoremployingdepartmentmustimmediatelynotifythePurchasingCardProgramAdministratoruponlearningofcardholderterminationsortransfers.Advisethedatethatcardprivilegesneedtobeterminated.PurchasingwillimmediatelynotifyUSBank,therebyprotectingtheUniversitythroughVisa’sLiabilityWaiverProgram.FailuretonotifyUSBankwithintwo(2)daysoflearningofanemploymentstatuschangevoidsthisprotection.TheemployingdepartmentisresponsiblefordestroyinganddiscardingthePurchasingCardoncethecardholderleavestheUniversity/department.DoNOTsendactivePurchasingCardsthroughcampusmail.Additionally,shouldtheemploymentstatusofavalidator,reallocator,approveroranyoftheirproxieschange,theemployingdepartmentshallnotifythePurchasingCardProgramAdministratorimmediately.Theelectronicreconciliationsystemoperateswithcardholderspeci icdatabases,whichincludesthenamesande‐mailaddressesofeachoftheabove.AnyemploymentstatuschangesnotcommunicatedtothePurchasingCardProgramAdministratorwillcausedelaysanderrorsinthereconciliationsystem.


Appendices I. General Rules for ISU Funds FromtheController'sDepartment,Allowability&Appropriateness:HowtoKnowifExpensesAreAllowableUpdated4/3/2014http://www.controller.iastate.edu/accounting/allowability.pdfADEQUATEDOCUMENTATION–Itisnotpossibletodeterminetheallowabilityandappropriatenessofanexpenseunlessadequatedocumentationexists.Adequatedocumentationincludesaninvoiceorreceiptthatidenti iesWHATwaspurchased,WHEREitwaspurchased,WHOpurchasedit,andWHENitwaspurchased.Ifallofthisinformationisnotcontainedonthereceiptorinvoiceitself,itneedstobeaddedtotheexplanationontheelectronicdocumentorvoucher,orwrittenonthereceipt/invoice/intramural.The ifth“W,”orWHYitwaspurchased,mustbeaddedtotheBusinessPurposesectionoftheelectronicdocumentorintramural.Thedepartmentand/orcollegeareultimatelyresponsiblefordetermininganddocumentingtheallowabilityandappropriatenessofexpenditures.Thedepartmentand/orcollegeareinthepositiontodeterminethebestwaytousetheirfunds.Judgmentonreasonablenessofallexpenditures,andespeciallyinthecaseofhospitality,istheresponsibilityofthecollegeand/ordepartment.Whencashorotherpropertyisgivenouttoresearchparticipants,aResearchParticipantReceiptForm(RPRF)shouldbeattachedinlieuofaninvoice.Whencashorotherpropertyisgivenoutaspartofadrawing,doorprize,orsomeotherpurposeotherthanresearch,aPropertyReceiptFormshouldbeattachedinlieuofaninvoice.APropertyReceiptFormisnotrequiredfor:

lowers(ormemorial/giftinlieuof lowers)giveninconnectionwithanillness,hospitalization,ordeathofanemployeeortheirimmediatefamilymembers;or

giftstodonorsorinternationalvisitors;ormilestonerecognition,retirementorgoing‐awaygifts;ortokennon‐cashitemsortokenresearchincentives(havingavalueof$20.00orless).

UNALLOWABLEEXPENDITURES‐Certaintypesofexpendituresarenotallowablefromanyfundingsource.Examplesofunallowableexpendituresinclude:•Artworkforindividualof icesisconsideredapersonalexpenseandisnotallowablefromanyfundingsource.However,artworkinpublicareasisallowable.•Flowersforbirthdays,holidays,weddings,weddinganniversaries,orbabyshowersarenotallowablefromanyfundingsource.Seethesectionbelowforconditionallyallowablepurchasesof lowers.•Giftsinlieuofpaymentforservicesarenotallowablefromanyfundingsource.Seethesectionbelowforconditionallyallowabletokennon‐cashitems.•Giftstoemployeesforbirthdays,holidays,weddings,weddinganniversaries,orbabyshowersarenotallowablefromanyfundingsource.•Homeinternetreimbursementisnotallowablefromanyfundingsource.Inaddition,cellmodemsprocuredfromanISUcontractedcellularprovidershouldnotbeusedforpersonaluseinplaceofhomeinternetaccess.•Homeof iceexpensesareunallowablefromanyfundingsourceifISUprovidesof icespaceinanotherlocation.•Parking ines,parkingpermits,library ines,latefees,and inancechargesarethepersonalresponsibilityofthepersonwhoincursthem.Theyarenotallowablefromanyfundingsource.


CONDITIONALLYALLOWABLEEXPENDITURES‐Sometypesofexpendituresareonlyallowablefromcertainfundingsources,orwhentheexpendituresmeetotherconditions:•Alcoholicbeveragesusuallyareonlyallowablefromagency(206)funds,orfromgeneralsupportFoundation(497)fundsinappropriatehostingsituations.IfonlyISUemployeesareattending,only206fundsmaybeused.Otherfundingsourcesmightbeallowableiftheuseisforcooking,research,coursestudy,orcateringprovidedbyanISUdepartmentthatroutinelyprovidescateringservices.ApprovalsanduseofalcoholforeventsinUniversitybuildingsandonUniversitygroundsmustcomplywiththeUniversityPolicyLibrary‐Alcohol,Drugs,andIntoxicants.IfanISUdepartmentputsonaconference,andthefeespaidbytheconferenceparticipantsincludeaneventthatservesalcohol,thenon‐sponsoredfundaccountthatreceivedtheregistrationfeesmayalsobeusedtopurchasethealcoholfortheconference.Itshouldbenotedthatconferencesfundedwithsponsoredfundsdonotallowthepurchaseofalcohol,evenwhenfundedfromparticipantfees.•Coffee,coffeepots,refrigerators,microwaveovens,etc.purchasedexclusivelyforemployeeuseareallowablewhenchargedtoagency(206)fundsorFoundation(497)funds.ThisdoesnotprecludeaunitfrominitiallychargingcoffeetoUniversityfunds,exceptsponsoredprogramsfundingsources,andthencollectingemployeefundstoreimbursetheUniversityaccount.•Con lictofInterestpaymentsmustbepre‐approvedbyPurchasing.•Doorprizes,otherthantokennon‐cashitemstoemployeesanddescribedbelow,thataregivenoutduringanemployeemoraleeventareallowableonlyfromagency(206)funds.Doorprizesorraf leprizesgiventostudentsornon‐employeesatISUeventsareallowableonallfundsexceptsponsoredprogramfunds.Ifthevalueoftheprizeismorethan$20.00,aPropertyReceiptFormmustbesignedbytherecipientandkeptwiththeexpendituredocumentation.•Flowersusedforpublicfunctions,suchasretirementpartiesandconvocations,areallowablefromsourcesotherthansponsoredprogramsfunding.Flowerspurchasedinconnectionwiththeillnessorhospitalization(includingmaternity)ofemployeesareallowableonlyfromagency(206)fundsorgeneralsupportFoundation(497)funds.Flowerspurchasedinconnectionwiththedeathofemployees,theirimmediatefamilymembers,orkeyconstituents(e.g.,donors)areallowableonlyfromagency(206)fundsorgeneralsupportFoundation(497)funds.Amemorialorcashgiftmaybemadeinlieuof lowers,aslongastheamountdoesnotexceedwhattypicallywouldhavebeenspentfor lowers.•Giftsforrecognitionofemployeeachievements(suchasthosepresentedthroughformalawardsprograms),retirements,orgoing‐awayfunctionsareallowable,exceptonsponsoredprogramsfunding.However,thecostofthegiftmustbereasonable.Reasonablenessofcostswouldvarydependingonsuchissuesaspositionlevel,howmanypeopletheemployeeinteractedwith,aswellasthelengthofservicetotheinstitution.Giftstointernationalvisitors,especiallythosefromcertaincultures,arefrequentlyanexpectedcourtesyandareconsideredanappropriateexpenditure,exceptonsponsoredprogramsfunding.•Personaluseitemsarenotreimbursableexceptwhenallowedfromagency(206)funds.Examplesofpersonaluseitemsincludeclothingsuitableforstreetwear,parkingpermits,andbuspassesforcommuting.However,shirtsthatcontainthedepartment’slogowornasauniform,foraspeci icevent,orforprogramidentitypurposeswouldbeallowablefromsourcesotherthansponsoredprogramsfunding.•Printingandphotocopyingdoneoff‐campusareonlyallowablewhileintravelstatus,forafter‐hoursemergencies,orforprintingthatcannotbeperformedbyon‐campussources.•Tokennon‐cashitemshavingavalueof$20.00orlessgiventoemployeesorstudents,suchasduringanemployeemoraleorappreciationevent,areallowableexceptonsponsoredprogramsfunding.UNALLOWABLEPROCUREMENTMETHODS–PleaseseePurchasing’swebsiteforRestrictionsonDelegatedAuthority.Whiletheexpenditureandthefundingsourcemaybeallowable,formostpurchasesyoumusteithersubmitaWebRequisitionorusetheP‐card,asemployeereimbursementsandpaymentswithoutapurchaseorderarenotallowed.•Cellphones,cordlessphones,IPphones,andtelephonesmustcomplywithuniversitystandards.CellulardevicesmayonlybepurchasediftheserviceisprovidedthroughaUniversity‐ownedcontractplan.Cellulardevicesassociatedwithapersonally‐ownedserviceplancannotbepurchasedorreimbursedwithanyfunding


source.However,theemployeemaybeeligibleforreimbursementofuseofthecellulardevicethroughtheCommunicationTechnologyAllowanceprogram(seebelow).•Chemicals,controlledsubstances,hazardousmaterials,andradioactivematerialsrequireaWebRequisitiontoallowtrackingofmaterials.•Computersandlaptopsmustmeetcompatibilitystandards.PleasecontactPurchasingforinformationaboutusingcyBUYorTechCyte.•FurnitureandFurnishingsmustmeetstandardizedproductspeci ications.PleasecontactPurchasingabouttheircompetitively‐bidcontracts.•Leases,rentalagreements,oranyothersignedagreementsmustbepre‐approvedbyPurchasing.•Materialscosting$500.00ormorecannotbeprocessedasnon‐travelemployeereimbursements,andmaterialscosting$100.00ormorecannotbeprocessedonadisbursementvoucher(non‐PO).ProcurementalternativesincludepaymentstovendorsusingaP‐card,WebRequisition,orusingauniversityservicecenter.•Professionalservicesexpectedtobe$2,000.00ormore(includingexpenses)fortheyearrequirebothaProfessionalServicesContractualAgreementandaWebRequisition.•Routineservicescosting$100.00ormorecannotbeprocessedonadisbursementvoucher(non‐PO),andrequireusingeitheraP‐cardoraWebRequisitioninstead.SELECTEXPENDITURECATEGORIES‐Thefollowingexpenditurescategorieshaveinherentlybeensubjecttomorescrutiny,bothinternallyandwiththepublic.•CellPhonesTheUniversityissuedaCommunicationTechnologyAllowancePolicyandReimbursementProcedures,effectiveJuly1,2009–http://www.controller.iastate.edu/controller/cta.htm.Thepolicyandproceduresoffertwoallowablemethodsforprovidingcellularphoneservicestoeligibleemployees:

•ThroughISUcontractedcellularproviders–ThismethodisforemployeesthatusetheircellulardevicesforprimarilyUniversitybusinessandwhocarryapersonalcellulardeviceforpersonalcallsordonotnecessitatetheuseofacellulardeviceforpersonalcalls.

•ThroughtheuseofaCommunicationTechnologyAllowance(CTA)‐Thismethodisusedprimarilybyemployeeswhodonotwanttocarrytwocellulardevicesandrequiretheuseofacellulardeviceforpersonalcalls.Thismethoddoesnotallowforreimbursementoftheemployee’spersonally‐ownedcellulardevices.TheCTAispaidtotheemployeeasanon‐travelreimbursementthroughtheEmployeeReimbursementSystem.AcopyoftheapprovedCTAformshouldbeimportedasareceiptwhensubmittingthenon‐travelreimbursement.Acopyofthecellphonebillisnotrequiredtobeattachedtothereimbursementrequest.

ForemployeeswhodonotmeetCommunicationTechnologyAllowancePolicyeligibilityrequirements,reimbursementsmaybemadeforinfrequentnecessarybusinesscallswherethecallsareidenti iableandjusti iedinwritingANDthecallsresultinadditionalcoststotheemployee’spersonalplan,suchasroamingcharges,minuteoveragechargesortemporaryinternationalaccess.NeitherCTAsnoruniversity‐ownedcommunicationtechnologyplansmaybechargedtofederallysponsoredprojects,exceptwherethecostsmeetthede initionof“unlikecircumstances”andareallowableinaccordancewithOMBCircularA‐21andtheuniversity’sSponsoredProgramsCostingPolicy.Theremaybespeci icrestrictionsontheuseofothernon‐federalsponsoredfundstopayfortechnologycosts.•DonationsandContributionsDonationsandcontributionsareallowablefromagency(206)funds.However,adonationorcontributionmaybeallowablefromothernon‐sponsoredfundingsourcesifitcoversaspeci icidenti iablecost.IfISUissponsoringaconferencewheretheywillbelistedintheconferenceliteratureasasponsoroftheevent,thechargeshouldbedescribedasadvertising.


•EmployeebusinessfunctionsThegreatestuncertaintyregardingallowabilityoftenoccursforeventsinwhichonlyISUemployeesarepresent.Theassociatedcostsmustrepresentalegitimatebusinessexpensewithawork‐relatedpurpose.ThefollowingprovideexamplesofmeetingsattendedonlybyISUemployees.Foodandbeveragesforrecurringfunctionswhereparticipantsareallfromthesamedepartmentshouldbekepttoaminimum.

•Amealmaybeservedwhenthefunctionispre‐plannedandanumberofpeopleareinvolved.Havingfoodservedoncampusvs.diningoutisgenerallyviewedasmorebusinesslikeandlesssocial.Examples:

•Ifthemostconvenienttimeagroupofpeoplecanscheduleawork‐relatedmeetingisoverthenoonhour,providinglunchoncampusisgenerallyappropriate.Recurringcommitteemeetingsinvolvingemployeesfrommanydepartmentswouldfallintothiscategory.

•Iftwoemployeesmeetatarestaurantdowntown,evenifbusinessisdiscussed,thisisgenerallynotappropriate,sincetheindividualswouldnormallyhavelunch.Undersomecircumstanceswhereitistheonlyconvenienttime,agency(206)fundsorgeneralsupportFoundation(497)fundsmaybeused.ForFoundation(497)funds,thebusinesspurposeofthemeetingmustbedocumented,andnoalcoholispermitted.

•Therestaurantusedmustbecommensuratewiththebusinesspurposeofthemeetingandexpensesmustbereasonable.Upscalerestaurantsarenormallyonlyappropriatewhenoutsidersareinattendanceandmakingapositiveimpressionontheguestispartofthebusinesspurpose.

•Employeeparties/picnicsOthergatherings,suchasholidaypartiesoremployeepicnics,shouldonlybeexpensedfromagency(206)orgeneralsupportFoundation(497)funds,andthebusinesspurposemustbeproperlydocumented.Thebusinesspurposeforthesetypesofeventsgenerallyisemployeemoraleorappreciationwhichisnotthesamethingasmilestonerecognition,whichspotlightsaspeci icachievementofanindividualorunit.Forexample,anannualemployeepicnicwouldbeemployeeappreciation,butapicnictocommemoratethe25thanniversaryofthedepartmentwouldbeconsideredmilestonerecognition.•FundraisingSincebuildingrelationshipswithalumniandfundraisingareintegralpartsofUniversityadministration,costsforthesetypesofeventscanfrequentlybepaidfromanysourceexceptsponsoredprogramsfunding.However,anyeventwhereticketsaresoldandtheproceedsusedasfundraisingshouldbecoordinatedwiththeFoundationsothatappropriatetaxreportingtothedonorscanoccur.Withoutthepropergiftreceipt,noportionofthepaymentcouldbeconsideredtaxdeductiblebythedonor.•HospitalitydocumentationHospitalityexpenseswillbeprocessedprovidedthedocumentationincludestheWHO(specifynamesandbusinessrelationshipifnotclear),WHAT,WHEN,WHEREandWHYoftheevent.Itistheresponsibilityofthecollegeand/ordepartmenttoexplicitlystatethebusinesspurposeonallexpendituretransactionsauthorizingpaymentofcosts,especiallyforemployee‐relatedevents.•MembershipsInstitutionalmembershipsthatareofuniversity‐widenature,suchastheAmericanCouncilonEducation,theNationalAssociationofStateUniversityLandGrantColleges,andtheNorthCentralAccreditingAssociation,maybefundedcentrally.Decisionsandfundingofotherassociationmembershipsshouldbemadeatthecollegeanddepartmentallevel.Atthediscretionofthedepartment,personalmembershipsinprofessionalorganizationsmaybepaidifjournalsorotherprofessionalmaterialsrelatingtotheunit’sbusinesspurposeareincludedinthecostofmembership.Membershipsofapurelysocialnaturearenotallowable.Itistheresponsibilityofthecollegeand/ordepartmenttoassurethattheauthorizationorexpenseconformstouniversitypolicyaswellaswithanyothersponsoringagencypolicies.


II. Expenditures Involving Founda on Funds FromtheController'sDepartment,Allowability&Appropriateness:HowtoKnowifExpensesAreAllowableUpdated4/3/2014http://www.controller.iastate.edu/accounting/allowability.pdfEffectiveOctober1,2002,UniversitydepartmentswererequiredtouseaUniversityaccount(497funds)toexpendFoundationfunds.Exceptionstothisprocessare:

ScholarshipsareprocessedthroughtheOf iceofStudentFinancialAid,utilizingtheFoundationaccountnumberontheStudentAidAwardForm.

CapitalbuildingprojectsaremanagedandbilledthroughtheFacilitiesPlanningandManagement

department.Expensesrelatingtodonorrelationsandfundraisingwherecon identialityisanissuemaybepaiddirectly

bytheISUFoundation.

•MilestonerecognitionRetirement,goingawayorothermilestonerecognitionfunctionsaregenerallyconsideredtobeappropriatefromsourcesotherthansponsoredprogramsfundingaslongasthecostsarereasonable.Alcoholisallowablefrom206accounts.Ifnon‐ISUemployeesalsoareattending,generalsupport497accountscanbeused.Theseeventscanbedistinguishedfromapurelysocialfunctionsincetheprimarypurposeoftheeventistorecognizeanemployee(s)forextendedservicetoISUorforspeci icachievementsuchasreceivinganaward.Reasonablenessofcostswouldvarydependingonissuessuchashowmanypeoplethehonoreeinteractedwithaswellastheirlengthofservicetotheinstitution.Inaddition,thenatureoftheexpenseshouldbeconsidered.Cakeatareceptionwouldbeanappropriatecost,butgreensfeesforagolfoutinghonoringaretireewouldnot.Recognitionofpersonalevents,suchasemployeebirthdays,weddings,weddinganniversaries,orbabyshowers,isnotanappropriateexpensefromanyfundingsource.Ifaunitfeelsthisisanimportantevent,thegrouporadministratorinvolvedshouldpaytheexpensespersonally,withoutexpectationofreimbursementfromISU.Recognitionofpersonaleventsfordonorsorotherexternalconstituentsmay,inuniquesituations,suchasthebirthdayofamajordonor,beanappropriateexpensefromagency(206)orgeneralsupportFoundation(497)funds.•Spousal/Signi icantOtherattendanceMealexpensesforanemployee’sspouseorsigni icantotherusuallyarenotallowable.Seeexceptionsbelow.Expensesofthisnatureshouldnotbechargedtosponsoredprogramsfunding.Ifthespouse/signi icantotherofaninterviewcandidateisinattendanceatanISUsponsoredmeal,thentheexpensesforISUemployees’spouses/signi icantotherswouldalsobeallowable.Also,spousal/signi icantotherattendanceatstaffrecognitionfunctionsisgenerallyallowable,asisattendanceatreceptionsforcampusvisitorsorfundraisingeventsifsucheventsaretypicallyattendedbyothersfromoutsideISU.Additionally,spousal/signi icantotherattendanceatameetingwithadonorcoupleisgenerallyallowable.Thetravelandassociatedmealexpensesofspouses/signi icantothers/otherfamilymemberswouldnotbeanallowableexpenseunlessabusinesspurposeexistsand/orspeci icadministrativeapprovalhasbeenreceivedtoincludethoseindividuals.


Allotherexpensesaretobeprocessedusinga497account.ExpensessubmitteddirectlytotheFoundationwillbereturnedtothedepartmentforprocessingbytheUniversityunlesstheyarecon identialitemsrelatedtofundraising.TheFoundationautomaticallyreimbursestheUniversitymonthlyforallexpendituresandchargestheappropriateFoundationaccount.ISUprocurementpoliciesandISUbusinesspurposerequirementsapplytothe497accounts.Hospitalityexpensesrelatedtoalumnievents,employeerecruitment,andexternalrelationsexpensesmaybepaidfromthe497accountsevenifalcoholisserved.Generalpurpose497accountsmaynotbeusedtopurchasealcoholwhenonlyISUemployeesareattending.Expendituresmustcomplywithrestrictions,ifany,placedonthefundsbythedonor.Asalways,adequatedocumentationmustbeprovidedandtheauthorizingadministratormustbepreparedtojustifytheappropriatenessandreasonablenessoftheexpenditure.TheIowaStateUniversityFoundationisa501(c)(3)organizationestablishedsolelytobene itIowaStateUniversity.GiftstotheFoundationaretobeusedtosupportthemissionoftheUniversity.Therefore,expendituresfromFoundationaccountsmustrelatetoaUniversityactivityorfunction,ormustsupporttheUniversity’sadvancement,andareexpectedtobecommensuratewiththeprobablebene ittotheUniversity.Foundationfundsarenotintendedforthepersonalbene itofUniversityemployeesandareexpectedtobeusedprudently.All497expendituresarepublicrecords.Compliancewithdonorintentistheprimarytestofallowability.Thedeterminationoflegitimatebusinesspurpose,orappropriateness,istheresponsibilityoftheDepartmentChair,DirectororDean.

III. Vending Account Usage

Date:June12,2003To:Controller'sInformationNetworkFrom:StephanieFox,AssociateControllerAsmanyofyouknow,thevendingaccountsinthesection/projectsof206‐13‐35arebeingclosedandthebalancestransferredtonew206accountsthatwillbeusedsolelyforyourdepartment.TheadvantageofhavingindividualaccountsisthateachaccountcanbecodedtotheproperdepartmentwhichwillenableyoutoincludeitonreportscreatedinHyperionandalsotouseitinprocessesthatinvolveelectronicrouting.Thesewerenotoptionsundertheoldnumberingscheme.Theothermajorchangeassociatedwiththeconversionisthat,effectivewithJulybusiness,youwillmakepaymentsagainstyourvendingaccountsusingthesameformsandprocessesasareusedforyourotheruniversityfundsinsteadofusingtheCampusOrganizationsVoucher.PaymentswillbeprocessedthroughtheAccountingDepartmentin3606ASBinsteadofCampusOrganizationsAccountingintheMemorialUnion.Thebasicpoliciesregardingallowabilityonvendingaccountswillnotchange.Speci ically:VendingaccountscanbeusedforpurposesdeemedappropriatebyyourDepartmentChairorDirector.SincethesecontinuetobeAgencyfundsinthe206series,suchthingsas lowers,giftsandalcoholwillbeconsideredallowableifdeemedappropriatebythedepartment.2.WhileP‐cardsmaybeusedforpurchasesonthevendingaccounts,thestandardP‐cardrulesprohibitingpurchaseofsomegoodsandservicesstillapply.Theserulescanbefoundathttp://www.purchasing.iastate.edu/card/usage.html.Forexample,giftsmaybepurchasedwithvendingfundsbutgiftscannotnotbepurchasedwithaP‐card.VendingaccountpurchasesofgiftsandotheritemsnotallowableonP‐cardshouldbedoneonanISUVoucher.3. Several have asked whether the 2% administrative fee will apply to vending accounts. The fee will be taken


IV. Iowa Gi Law In1992thelegislaturepassedtheIowaPublicOf icialsActwhichamendedthegiftlawinIowaCodechapter68B.Thegiftlawwasfurtheramendedin1993.Thishandbooksetsforthportionsofthegiftlawasamendedin1993andanswerssomecommonquestionsthatmayariseininterpretingthegiftlaw.TheIowaPublicOf icialsActasamendedalsocontainsmanyotherprovisionsoflawrestrictingtheactivitiesofpublicof icialsandemployeesandlobbyists.Thehandbookmaybefoundathttp://www.purchasing.iastate.edu/policy/giftlaw.html.FromISUPolicyLibrary—GratuitiesandGifts,Procurement(http://policy.iastate.edu/policy/gratuities/):IntroductionIn1992,theIowalegislaturepassedtheIowaPublicOf icialsAct,amendingthegiftlawinIowaCodechapter68B.Thisactwasfurtheramendedin1993.

PolicyStatementEmployeesoftheuniversityandtheirimmediatefamilymembersshallnot,directlyorindirectly,solicit,accept,orreceivefromanyone"donor,"agiftasde ined.Agiftmeansarenderingofmoney,property,services,discount,loanforgiveness,paymentofindebtedness,oranythingelseofvalueinreturnforwhichlegalconsiderationofequalorgreatervalueisnotgivenorreceived.Employeesmayacceptitemsavailablefreeofchargetomembersofthegeneralpublicandnon‐monetaryandfooditemsworthnomorethanthreedollars.A"donor"includesanyonewhocontractswiththeuniversityorisseekingtocontractwithit.Thisincludespersonsinvolvedinsales,leases,purchases,orothercontracts.FromISUPolicyLibrary‐Gifts(http://policy.iastate.edu/policy/gifts/):IntroductionThispolicyisinaccordancewithcon lictinterestofpublicof icersandemployeesfromChapter68B,CodeofIowa.

PolicyStatementEmployeesoftheUniversityandtheimmediatefamilymembersshallnot,directlyorindirectly,solicit,accept,orreceivefromanyonedonorinanyone‐calendarday,agiftasde inedbelow.

EmployeesoftheUniversityandimmediatefamilymembersofeachshallnot,directlyorindirectly,offerormakeagiftasde inedbelowtoanof icial,employee,localof icial,localemployee,memberoftheGeneralAssembly,candidate,orlegislativeemployeeinanyonecalendarday.

fromthevendingfundsbeforetheyaredistributedtoyourdepartment.Youwillnotseeachargeforadministrativefeeonyouraccounts.Manyofyounoticedthattherehasn'tbeenadistributionofvendingfundsforseveralmonths.Wearecurrentlyworkingwiththenewvendingcontractortogettheinformationneededtomakethedistribution.Youwillreceiveallfundsdueassoonasthisproblemcanberesolved.Yourpatiencewiththissituationisappreciated.Pleasecontactmeifyouhaveanyquestionsonthepoliciesrelatingtotheuseofvendingfunds.Foradditionalinformationonthenewaccountnumbers,contactLisaShoemakerintheControllersDepartmentat515‐294‐5331.


GiftsDe inedAgiftisarenderingofmoney,property,services,discount,loanforgiveness,paymentofindebtedness,oranythingelseofvalueinreturnforwhichlegalconsiderationofequalorgreatervalueisnotgivenandreceived,ifthedonorisinanyofthefollowingcategories:

DonorisdoingorseekingtodobusinessofanykindwiththeBoardofRegents,StateofIowaoraninstitutionitgoverns.

DonorisengagedinactivitiesthatareregulatedorcontrolledbytheBoardofRegents,StateofIowaoraninstitutionitgoverns.

Donorhasinterestthatmaybesubstantiallyandmateriallyaffected,inamannerdistinguishablefromthepublicgenerally,bytheperformanceornonperformanceoftheof icialdutyoftheBoardoranyoftheBoard'semployees.

DonorisalobbyistwithrespecttomatterswithinthejurisdictionoftheStateBoardofRegents.Thede initionof"gift"inChapter68BoftheIowaCodeiswrittenintermsofthegovernmentof icialoremployeesastherecipientofagift.Thestatutealsoprohibitsgovernmentof icialsoremployeesfrommakinggifttoof icialsoremployeesofotherstateagencies,inthecircumstancesdescribedabove.Insuchcases,theemployeeisthedonorandtheotherstateof icialoremployeeisthedonee.

Giftsarenot:

Campaigncontributions. Informationmaterialrelevanttoapublicservant'sof icialfunctionsasanemployeeoftheUniversity.

Examplesofsuchmaterialarebooks,pamphlets,reports,documents,orperiodicals. Registrationfeesortuitionnotincludingtravel,atwhichtheemployeereceivesinformationrelevanttothe

employees'of icialfunction. Anythingreceivedformapersonrelatedwithinthefourthdegreebykinshipormarriage,unlessthedonor

isactingasanagentorintermediaryforanotherpersonnotsorelated. Aninheritance. Anythingavailabletoordistributedtothepublicgenerallywithoutregardtoof icialstatusoftherecipient. Actualexpensesforfood,beverages,travel,andlodgingforameeting,whichisgiveninreturnfor

participationinapanelorspeakingengagementatthemeetingwhentheexpensesrelatedirectlytothedayordaysonwhichthedoneehasparticipationorpresentationresponsibilities.

Plaquesoritemsofnegligibleresalevaluegivenasrecognitionofpublicservice. Non‐monetaryitemswithavalueoflessthanthreedollarsthatarereceivedfromanyonedonorduring

onecalendarday. Itemsorservicessolicitedorgiventoastate,national,orregionalorganizationinwhichtheUniversityisa

member. Itemsorservicesthatarepartofaconferenceorsimilarmeetingandsponsoredbyastate,regional,or

nationalorganizationofwhichtheUniversityisamember.


V. Communica on Technology Allowance FromISUPolicyLibrary‐CommunicationTechnology(http://policy.iastate.edu/policy/communicationtech):IntroductionTheuniversityrecognizesthattheperformanceofcertainjobresponsibilitiesmayrequiretheprovisionofadditionalcommunicationtechnologydevicesorservicesasdeterminedbytheheadoftheemployingunitandinaccordancewithuniversityeligibilityrequirements.Thepurposeofthispolicyistoestablishlimitationsandparametersforfundingcommunicationtechnologydevicesandservices.Thispolicyisalsointendedtopreserveuniversityresourcesandpreventmisuseoffunds.

Communicationtechnologyservicesshallbede inedas:

cellularphonevoice/textmessagingservice, cellularphoneISP(InternetServiceProvider)dataserviceassociatedwithdevicessuchassmartphones

andPDAs,and cellularwirelessmodemsassociatedwithdevicessuchaslaptopcomputersPolicyStatementForeligibleandauthorizedindividuals,theuniversitymayprovide:

Communicationdevicesandservicesthroughoneoftheuniversity'spurchasingcontracts,or Ataxablepayrollallowancetotheemployee,hereinafterreferredtoasaCommunicationTechnology

Allowance(CTA).Amonthlypayrollallowanceisprovidedtohelpcoverthemonthlycostforbusinessuseofanemployee'spersonalcellularvoiceorcellulardataservice.Themonthlypayrollallowanceamountwillbedeterminedperestablishedallowanceandreimbursementprocedures.InconformancewithU.S.taxregulations,allCTAsareconsideredtaxable,withoutexception.Theuniversityassumesnoliabilityforanyemployee‐ownedpersonaldevicesorserviceplans.

EligibilityforCTACommunicationtechnologyservicesmaybefundedifbusinessjusti icationcanbemadebytheemployingunitandfundingisavailable.InordertobeeligibleforaCTA,theemployee'semploymentclassi icationmustbeFaculty,Professional&Scienti icorexemptmerit.Employeesmustmeetatleastoneofthefollowingeligibilitycriteriaforanallowance.

Theemployee'sjobrequireshim/hertospendaconsiderableamountoftimeoutsideofhis/herassignedof iceorworkareaduringassignedworkinghours,requiringregularaccesstocommunicationtechnologies.

Theemployee'sjobrequireshim/hertobereachedeitherasarespondertoemergenciesoncampusortocarryouttheirassignedresponsibilitiesoutsideofnormalworkinghours.

TheCTAisnotintendedforoccasional,incidentaluse,purelyvoluntary/convenientaccess,orwhereneedscanbemetbyadepartmentalpoolofcellulardevicesavailablethroughuniversitycontracts.

FundingLimitationsofCTAUnitshaveauthoritytoestablishmorerestrictivepoliciesandtoreview,question,limit,andrefuse,duetofundinglimitations,requestsforCTAsthatotherwisemeeteligibilityrequirements.


VI. Sales Tax Exemp on IowaStateUniversity(ISU),asastateeducationalinstitution,isexemptfrompayingstatesalestaxorlocaloptionsalestaxongoodsorservicespurchasedinthestateofIowa.Wearerequiredtopayhotel/moteltaxes.ThestateslistedbelowalsogranttaxexemptstatustoIowaStateUniversityforgoodsorservicespurchasedwhileintheirstate.Asindicatedbelow,aformorcopyofaletterisusuallyrequired.TheseformsorlettersmaybeobtainedbycontactingShandraVanBerkumat515‐294‐1308orshanvan@iastate.edu.GoodsorservicespurchasedbyIowaStateUniversitywhileinthefollowingstatesaresubjecttothatstate'ssalestax.GoodspurchasedbyISUandshippedtoanaddressinthesestatesalsoaresubjecttothatstate'ssalestax.IowaStateUniversityisnottaxexemptinthefollowingstates: Thefollowingstatesdonothaveageneralsalestax:

Alaska May need to pay city or local government taxes.

Hawaii No sales tax, but a gross receipts tax.

Montana

New Hampshire Must pay meals and rooms taxes.

New Mexico No sales tax, but a gross receipts tax; use Iowa form for exemption status.

Oregon

Alabama Nebraska Utah

Arizona Nevada Vermont

Arkansas New Jersey Virginia

California North Carolina Washington

Connecticut Oklahoma West Virginia

Georgia Pennsylvania Wisconsin

Louisiana South Carolina Wyoming

Maryland Tennessee

NeitherCTAsnoruniversity‐ownedcommunicationtechnologyplansmaybechargedtofederallysponsoredprojects,exceptwherecostsmeetthede initionof"unlikecircumstances"andareallowableinaccordancewithOMBCircularA‐21,ExhibitC,andtheuniversity'sSponsoredProgramsCostingPolicy.Theremaybespeci icrestrictionsontheuseofothernon‐federalsponsoredfundstopayfortechnologycosts.TheuniversityestablishesCTAlimitswhicharereviewedandadjustedperiodically.


Colorado Need Iowa form showing Vendor name.

Florida Need copy of Florida exemption certificate.

Idaho Need copy of letter from Idaho.

Illinois Need copy of letter from Illinois.

Indiana Exempt only for conference rooms, meeting rooms and AV equipment. Contact purchasing for form and information.

Iowa Need Iowa form - Contact Shandra Van Berkum, 515-294-1308

Kansas Need copy of letter from Kansas.

Kentucky Need copy of letter from Kentucky.

Maine Need copy of Maine exemption certificate.

Massachusetts Need copy of Massachusetts exemption certificate.

Michigan Need to fill out Michigan form and present at time of purchase.

Minnesota Need to fill out Minnesota exemption certificate and present at time of purchase.

Mississippi Need copy of letter from Mississippi.

Missouri Need copy of letter from Missouri.

New York Need completed New York form.

North Dakota Need copy of North Dakota exemption certificate at time of purchase.

Ohio Need completed copy of Ohio blanket certificate.

Rhode Island Need copy of letter from Rhode Island and a copy Iowa exemption certificate.

South Dakota Need copy of letter from South Dakota.

Texas Need completed Texas form - No sales tax is charged on hotel rooms, however ISU is not exempt from state & local taxes on hotel rooms.

Washington D.C. Need copy of letter from Washington D.C.

VII. Forms Thefollowingpurchasingcardprogramformsmaybefoundathttp://www.purchasing.iastate.edu/card/forms.html.

Departmentagreement Certi icateoflostreceipt Transactionroutingrecordmaintenancerequest

IowaStateUniversityistaxexemptinthefollowingstates(formsotherthanIowaareavailableathttp://www.purchasing.iastate.edu/salestax.html): *Delawaredidnotrespondwithinformationregardingtax‐exemptstatus.


VIII. Addi onal resources PurchasingDepartment“HowDoIBuy…”DecisionTree—http://www.purchasing.iastate.edu/commodities/StaffList/CommodityAssignments—http://www.purchasing.iastate.edu/staff/UniversityPolicyManualRecordsRetention—http://records.policy.iastate.edu/view.php?id=349Controller’sDepartmentGiftCerti icates—http://www.controller.iastate.edu/accounting/giftcerti icates.htmRiskManagementApprovedCaterers—http://www.riskmanagement.iastate.edu/foodTrademarkLicensingOf iceVisualIdentity—http://www.trademark.iastate.edu/units

purchasing card program guide - procurement …...stacy sassman, interim associate director of...

Documents