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ADMINISTRATIVE POLICY
Policy Title
Tulane Purchasing Card
Policy Subtitle/Subject
Purchasing Card (P-Card)
Responsible Executive(s) (RE)
Jim Wandling, University Controller
Responsible Office(s) (RO)
Corporate Card Administration – Materials
Management
Primary Point of Contact from RO
Phyllis Douglas, Corporate Card
Administrator
Contact Information (email and phone)
pdougla1@tulane.edu, 504-314-2675
Date Proposed
5/12/23
Reviewed
5/12/23
Last Updated
5/12/23
Effective Date
5/12/23
☒Permanent
☐Temporary
1.0 POLICY STATEMENT
This program is designed to provide user-friendly purchasing and payment tools so that Tulane’s
personnel can quickly and efficiently order and receive goods and complete effective accounting and
settlement processes. The program does include the controls and features needed to ensure that these
resources are used properly. The Purchasing Card (P-Card) program minimizes the number of manual
tasks required to complete the order and settle the transaction. Program success is contingent on
departmental compliance with approved procedures and guidelines.
2.0 PURPOSE AND SCOPE
The Purchasing Card program was established to provide a more efficient and cost-effective method for
purchasing and paying for small dollar transactions, high-volume transactions, and repetitive purchases.
The Purchasing Card is used in addition to the traditional process of requisition, purchase order,
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delivery, invoicing, accounts payable review, and disbursement of checks on certain transactions of
$2,500 or less.
The card is a privilege extended to Tulane faculty and staff (excluding student employees) and must be
used in a responsible and appropriate manner. Fraudulent or intentional misuse of the card will result in
revocation of the card, personnel actions against the Cardholder, and/or possible criminal charges. Tulane
University’s Office of Internal Auditing will conduct routine audits of Cardholder’s transaction files and
monthly summaries.
3.0 APPLICABILITY OF THIS POLICY
This policy will apply to all Tulane employees, including faculty and staff who may use a Purchasing
Card.
4.0 WEBSITE ADDRESS FOR THIS POLICY
www.policy.tulane.edu
5.0 CONTACTS
Subject
Contact
Telephone
E-mail/Web Address
Purchasing Card
Phyllis Douglas
504-314-2675
[email protected]
6.0 CONTENT
1.0 POLICY STATEMENT ....................................................................................................................................... 1
2.0 PURPOSE AND SCOPE ..................................................................................................................................... 1
3.0 APPLICABILITY OF THIS POLICY ................................................................................................................ 2
4.0 WEBSITE ADDRESS FOR THIS POLICY ...................................................................................................... 2
5.0 CONTACTS .......................................................................................................................................................... 2
6.0 CONTENT............................................................................................................................................................. 2
7.0 DEFINITIONS ..................................................................................................................................................... 3
8.0 POLICY AND PROCEDURES .......................................................................................................................... 3
8.1 Receiving a Purchasing Card .................................................................................................................... 3
8.2 Authorized Purchasing Card Use ............................................................................................................ 3
8.3 Unauthorized Purchasing Card Use ........................................................................................................ 4
8.3.1 Prohibited Purchases .............................................................................................................................. 4
8.3.2 Blocked Merchants .................................................................................................................................. 5
8.4 Making a Purchase………………………………………………………………………………………...6
8.5 Declined Transactions ............................................................................................................................... 6
8.6 Cardholder Record Keeping and Retention ........................................................................................... 6
8.7 Review, Approval, and Accounting Treatment of Monthly Activity ................................................. 7
8.8 Merchandise Returns and Exchanges ...................................................................................................... 7
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8.9 Charge Disputes…………………………………………………………………………………………...8
8.8 Audit Procedures………………………………………………………………………………………….8
8.9 Purchasing Card Security .......................................................................................................................... 8
9.0 CONSEQUENCE OF VIOLATING THE POLICY ........................................................................................ 9
7.0 DEFINITIONS
Card Administrator (Program Administrator) - The university employee registered with the Card
Provider as the only person authorized to make changes (e.g., add or cancel cards, change card controls,
etc.) to the card program.
Cardholder - An individual who holds the university Purchase Card.
Employee - Faculty, staff, and others (including students) identified as an employee in the university’s
Human Resource system.
Supplier - Any entity that provides goods or services. (Previously referred to as a Vendor.) For credit card
transactions, commonly referred to as a merchant.
8.0 POLICY AND PROCEDURES
8.1 Receiving a Purchasing Card
Prospective cardholder completing the online Purchasing Card Application must have final Departments
Head authorization. Department Heads will set monthly single transaction limits. This online application
and other information are available at www.ccadmin.tulane.edu. The authorized completed application
will be sent to Phyllis Douglas, Corporate Card Administration. Questions can be directed to this office
by calling 314-2675 or emailing [email protected].
Card applicants are required to receive training on the Purchasing Card Program prior to receiving a
card. Non-cardholder approvers of transactions are also required to receive the training.
Each Cardholder will be required to sign the Purchasing Card Employee Agreement indicating an
understanding of the policies, procedures, and responsibilities of a Cardholder.
The Purchasing Card Administrator will maintain records of Purchasing Card requests, dollar limits,
Cardholder transfers, and lost/stolen/destroyed card information.
8.2 Authorized Purchasing Card Use
The Cardholder will receive a Purchasing Card with his/her name embossed on it, and the card should
only be used by the Cardholder. No other person is authorized to use that card. The Cardholder may
initiate transactions on behalf of others in his/her department; however, the Cardholder is responsible for
all use on his/her card. The Cardholder is required to sign the back of the card.
Examples of typical purchasing card purchases include books, periodicals, subscriptions, professional
membership dues, newsletters, (if cardholder does not have a T&E card), photo processing, and office
supplies. All Computer purchases must be purchased through Technology Connection (over $2500 must
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be purchased through SciQuest). It is the Cardholder's responsibility to be aware of departmental rules
and guidelines and to make only appropriate purchases.
Use of the Purchasing Card will be limited to the following conditions:
• Departments will assign a single transaction limit to each Purchasing Card account. A maximum
amount of $2,500 has been established to avoid the purchase of capital equipment.
• A monthly spending limit, not to exceed 25% of the annual supplies budget for each account
authorized for use, will apply to each Purchasing Card. This limit will minimize the number of
charges that may occur if a card is lost or stolen.
• Tulane University is exempt from local and State of Louisiana sales tax.
The Cardholder must inform the supplier that the goods are not subject to sales taxes and confirm that no
sales taxes are charged before authorizing the transaction.
8.3 Unauthorized Purchasing Card Use
Purchasing Card transactions with certain types of merchants are blocked from use. These merchants
operate businesses that generally provide goods or services that are not allowed on the Purchasing Card.
The following is a list of categories of expenditures that are prohibited. Also listed below are the
categories of merchants/businesses that have been blocked. If a transaction is attempted for one of the
following categories of expenditures or merchants, or if the transaction exceeds the transaction limit, the
vendor cannot accept the card since the transaction will be declined through the point-of-sale
authorization process.
8.3.1 Prohibited Purchases
• Alcohol
• Animals
• Miscellaneous meeting expenses
• Business meals (entertainment)
• Capital equipment (items of equipment with cost greater than $2,500)
• Cash advances or cash instruments, gift cards for any purpose, flowers or gifts for employees
• Chemicals
• Consulting or personal services
• Drugs and controlled substances
• Cylinder gases
• Fines, penalties, or other similar fees
• Gasoline
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• Hazardous and/or radioactive materials
• Honoraria
• Leases
• Utilities including cell phone, beeper, cable and other communication services
• Non-university purchases
• Personal purchases
• Recreation
• Travel-related expenses
• Sam's Club, Costco, Amazon prime, etc. membership fees are not allowed
• Expenses pertaining to home office operation (computer costs, phone or line costs, etc.)
• Temporary Employee Services
8.3.2 Blocked Merchants
• Airlines
• Amusement and Entertainment
• Automobile Rentals
• Clothing Stores
• Hotels and Motels
• Personal Service Providers (Laundries, Barbers, Health Spa, etc.)
• Consultants & Professional Service Providers (Medical, Education, Accounting, etc.)
• Service Providers (Banks, Securities, Insurance, Resorts/Campgrounds, etc.)
• Utilities
• Various Miscellaneous Stores
• Most Transportation-related Providers
Cardholders should follow the university policy when using the Purchasing Card. Traditional payment
methods should be utilized when use of the Purchasing card is inappropriate.
The Purchasing Card must never be used to purchase items for personal or non-university purposes even
if the Cardholder intends to reimburse the university.
A Cardholder who makes an unauthorized purchase or uses the Purchasing Card in an inappropriate
manner will be subject to disciplinary action including, but not limited to, possible card cancellation,
termination of employment at Tulane University, and criminal prosecution.
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8.4 Making a Purchase
When making a Purchasing Card purchase, Cardholders must be sure the purchase is a clear university
business expense and should purchase from merchants commonly used by Tulane whenever possible to
take advantage of pricing and terms negotiated on a university-wide basis.
A cardholder will use the following checklist when making a purchase:
• The Cardholder will take reasonable steps to obtain the best price, quality, and delivery.
• Confirm that the selected merchant accepts VISA. If not, choose another vendor or submit a
requisition to the Purchasing Department so that the purchase can be made via a Purchase Order.
• Inform the supplier that the purchase is for Tulane University and is sales tax exempt.
• When making purchases in person, the Cardholder must sign the charge receipt and retain the
customer copy, along with the invoice or cash register receipt.
• When making purchases via telephone, Internet, mail order, etc., Cardholders should give the
merchant the account number embossed on their card and direct the merchant to include the
following on the shipping label and/or packing slip: Cardholder name and campus phone
number, Department name, Street Address including building name and room number
If the items are being shipped to a receiving department, the Cardholder should notify that department in
advance. Regardless of who receives the shipment, the Cardholder is responsible for obtaining all
documentation (packing slips, mail order form copies, etc.) related to the purchase.
All computer purchases must be reported to Moveable Property Management so they can be added to
the university’s property records. This required notification could be accomplished by e-mailing to
scordes@tulane.edu the following information: department name, name of user, location of
equipment, and the manufacturer, model, and serial number. An alternative method would be to fax
the above information, along with the invoice of the equipment purchased, to 862-8261.
8.5 Declined Transactions
The initial response to a declined transaction should be to log into Paymentnet4, select "Transactions"
from the menu bar, scroll down to "authorizations/declines." The cardholder may also contact JPMorgan
Card Member Service at 1-800-270-7760 (provide security information) to determine the cause. It is
possible for the cardholder to resolve the problem. Only after these steps are followed and it is deemed
that further assistance is needed should an email request be made to Card Administration with specific
details.
8.6 Cardholder Record Keeping and Retention
Each department should ensure that cardholders maintain adequate documentation for all
transactions made with Purchasing Cards. The cardholder is responsible for and required to
maintain documentation which will be used to reconcile the purchases and credits and must be
retained for a period of seven years for non-grant expenses (Grants and Contracts Accounting or
Office of Research Administration should be contacted for the retention period required for
individual awards on grant accounts). The university will now be leveraging the ability to upload
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receipts in the reconciling process which must be done upon cardholder review.
• When a purchase is made in person, the Cardholder will retain the invoice and customer
copy of the charge receipt. The Cardholder is responsible for checking that the supplier lists
the quantity and full descriptions of the item(s), and that sales taxes are excluded before
signing the charge slip.
• When making a purchase via telephone, Internet, or mail order, the Cardholder must
request that a receipt or confirmation of the order be provided directly to the Cardholder
(not Accounts Payable, Materials Management, or Corporate Card Admin).The
Cardholder should retain all shipping documentation.
• In the event of missing receipts or supporting documentation, cardholders must contact
Corporate Card Administration for direction in obtaining the necessary specific approval for
that transaction.
• Department heads are encouraged to have their Cardholders complete a Purchasing Card
Transaction Log to assist in the account reconciliation.
• Cardholders must maintain documentation in a manner that will allow an auditor to quickly
and easily review the records. Cardholders must file documentation by month in clearly
marked files. Each file should contain a printed copy of the Electronic Statement from
JPMorgan Chase and the receipts and other documentation. Documentation that is not
properly filed or organized may result in an audit finding.
8.7 Review, Approval, and Accounting Treatment of Monthly Activity
It is the cardholder’s responsibility to review and reconcile the monthly activity to the Electronic
Statement with original receipts that must be uploaded to Paymentnet4. Transactions will be posted on
the JPMorgan Chase PaymentNET4 Website – www.paymentnet.com . A User ID and password is
required for access.
The Purchasing Card has a designated default account number assigned to each transaction. This default
account number can be changed to a different account number if it has been authorized for use on the
Cardholder’s application. A natural account code will be assigned to each transaction and can be changed
to reflect the correct classification of the specific expense incurred. Charges normally appear 2 to 3 days
after the charge is made. Reviewing and reallocation (coding) adjustments should be done as soon as the
transaction is available in Paymentnet4. Receipts must also be uploaded at this time, attaching one receipt
to the equivalent transaction. Cardholders should complete their review and reconciliation by the 26th of
each month. Approvers must complete their approval process by the last business day of the month.
The cardholder’s approver is responsible for the timely review and approval of each transaction by the
cardholder. This required review and approval will be monitored monthly for compliance. An alternate
approver can be designated to perform this function in the absence of the primary approver.
8.8 Merchandise Returns and Exchanges
The Cardholder is responsible for contacting the merchant when items purchased with the Purchasing
Card are not acceptable (incorrect, damaged, defective, etc.) and arranging a return for credit or an
exchange. Receiving cash, checks, or a store credit for future purchases to resolve a return is
prohibited.
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The Cardholder is responsible for obtaining a credit on the Purchasing Card account for any returns
and retaining the credit receipt with the supporting documentation for that purchase. The Cardholder
should confirm that the credit is recorded in the next month’s card activity.
If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the
merchant and obtaining a replacement as soon as possible. Documentation showing the proper
resolution of the exchange is to be retained with the supporting documentation for that purchase.
8.9 Charge Disputes
Cardholders must resolve any discrepancy directly with the merchant, which is required by JPMorgan.
If the cardholder is unable to resolve the situation, the transaction must be disputed within 60 days of the
date of the charge. This dispute should occur only after a diligent attempt has been made to correct the
discrepancy and the merchant has failed to respond. The completed dispute form should be sent
electronically to JPMorgan Chase through the on-line system and the Cardholder should notify
Purchasing Card Administration when the dispute is submitted.
8.8 Audit Procedures
The Tulane University Office of Internal Auditing will perform routine audits of purchasing card
transactions. Such audits will be designed to verify that card transactions are authorized and appropriate
and to verify that required documentation has been properly accumulated, approved, and filed.
In the event of an audit finding, any of the following actions, depending on the severity of the finding,
may be taken by the university:
• Warning letter issued to cardholder and Dean or Department Head
• Card is suspended for up to 3 months
• Card use terminated
• Reimbursement
• Sanction or termination of employment
In addition, if misuse of the card is detected, the employee’s department will be responsible for the
charges in question. The Corporate Card Administrator will automatically transfer these charges to the
department’s general ledger account. Reimbursement by the Cardholder to the university for
unauthorized charges may also be required.
8.9 Purchasing Card Security
Immediately upon receipt of a Purchasing Card, the card holder must sign the back of the card. It is the
cardholder's responsibility to safeguard the Purchasing Card and account number to the same degree
that a Cardholder safeguards his/her personal credit information.
The Cardholder must not allow anyone to use his/her card account number and must not share their
account number or Paymentnet4 login information with anyone. A violation of this trust will result in
card revocation and disciplinary action.
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If any purchases have been made on a card and the transaction is not reviewed, the Cardholder will
receive an e-mail notification that there are transactions to review. This feature is for security purposes in
case the cardholder is not aware of the existence of this transaction.
If the Purchasing Card is lost or stolen, the Cardholder shall immediately notify JPMorgan Chase at 1-
800- 270-7760 and advise the Corporate Card Administrator of this notification.
A new Purchasing Card will be promptly issued to the Cardholder after the reported loss or theft. A card
that is subsequently found by the Cardholder after being reported lost or stolen must be cut in half and
forwarded to the Corporate Card Administrator.
In the event of transfer or termination, cardholders are required to return their Purchasing Card to either
the Corporate Card Administrator or their department head. Accordingly, departments are responsible
for the timely notification for the cancellation of cards for any transferred or terminated cardholders. This
notice must be provided within two business days of the termination date.
9.0 CONSEQUENCE OF VIOLATING THE POLICY
Violation of this policy may result in disciplinary action, up to and including termination.
For consequences of violating the policy refer to the Faculty and Staff handbooks found at
policy.tulane.edu.