Procard Policy & Procedure Manual
Comprehensive Program Policy & Procedure
- Procedure Statement
- To Whom this Procedure Applies
- Procurement Card Benefits
- Procard Issuance and PNC ActivePay Access
- Safeguarding ProCards & Account Information
- Limitations and Restrictions
- Accounting Information
- ProCard Usage Guidelines
- Documentation Requirements
- Monthly Reconciliation, Documentation, Submission & Approval
- Policy Enforcement
- Appendices (see Supplement)
- Forms & Documentation
- PNC ActivePay: Overview
- PNC ActivePay: Reviewing & Approving Transactions
- PNC ActivePay: Generating & Scheduling Reports
The purpose of this statement is to describe the application process, usage guidelines, and reconciliation and approval processes for Loyola University Chicago’s Procurement Card (ProCard) Program.
This document promotes the proper stewardship and general guidelines for University ProCard usage as it pertains to the appropriate and legal uses of LUC funds. The University receives, from a variety of sources, funds that carry with them certain fiduciary responsibilities. Inherent in these responsibilities is the requirement to operate the institution under guidance set forth by the Board of Trustees, to follow Generally Accepted Accounting Principles (GAAP), and to comply with all federal, state, and local rules and regulations, while supporting the University’s mission.
The ProCard Program is designed to provide an efficient way to procure business related goods and services and to directly pay for travel and business related expenses. Full time faculty or staff purchasing small dollar goods or traveling on Loyola University business are expected to be the primary users of the ProCard. Under this program, cardholders can charge qualified purchases and expenses directly to the ProCard, rather than paying out of their own pocket. Furthermore, a cardholder’s personal credit is not affected, even though ProCards are issued in an employee’s name. Instead, all ProCard transactions are billed centrally to the University and paid directly to the card-sponsoring bank.
Important Note: This ProCard program is not intended to circumvent any established LUC Finance or Purchasing departmental policies or procedures. Purchasing done on the ProCard must be within the limits as described by existing University policies and procedures (see References – Appendix D).
- Procurement Card Administration (PCA)
- Treasury and Cash Management (PCI)
- Individuals issued a ProCard
- Cardholders traveling on LUC business, regardless of the source of funds
- Cardholders who make LUC travel and business related arrangements for themselves and/or for others
- Individuals with supervisory responsibilities for LUC budgets
- Individuals who initiate, review, approve, process, or record financial transactions on behalf of the University
The President, Vice Presidents, Deans and Directors are responsible for assuring that within their administrative units or colleges/schools:
- Budgeted funds are available to meet all travel and business related commitments
- Proper authorization for travel is obtained before any commitments are made
- All ProCard expenditures are supported by detailed/itemized receipts or documentation
- All expenditures are in accordance with appropriate LUC policies, regardless of the source of funds
- There is adherence to the added conditions placed on expenditures paid from federal and/or state funds or from restricted gifts
Note: Contingency, grant, gift, start-up and funds from research stimulation are University funds, and are subject to the restrictions outlined in this document.
Caution: Colleges/schools, individual departments, or sponsoring programs may have more restrictive policies and procedures regarding travel and business expenses, but in no case will any unit be less restrictive than what is described in this procedure.
3.1. GENERAL RESPONSIBILITIES
Participation in the ProCard program is a convenience that carries many responsibilities. All University policies and procedures related to the procurement of goods and services, travel and other business related expenses, including the accounting for such expenses, must be followed. Furthermore, ProCards are University property, even though issued to an individual, and may never be used to make personal purchases. Non-compliance with University policies and procedures or blatant misuse of the ProCard will result in suspension of ProCard privileges and, in some cases, may result in disciplinary action including termination.
3.1.1. CARDHOLDER RESPONSIBILITIES
- Be a full-time faculty or staff member
- Follow all PCI related policies and procedures
- Attend mandatory training as required by PCA
- Sign the Procurement Card Employee/Cardholder Agreement at the conclusion of training
- Follow all University and departmental policies and procedures
- Ensure that Illinois State Sales Tax is not applied to their ProCard purchases
- Be the sole individual to charge/authorize expenses on their ProCard
- Immediately report a lost or stolen ProCard monitor all communications that are provided by Procurement Card Administration
3.1.2 SUPERVISOR AND APPROVER RESPONSIBILITIES
To provide oversight, ProCard approvers cannot be a subordinate of the cardholder or the beneficiary of the transactions being approved. The ProCard approver must review all ProCard transactions and confirm that all purchases and expenses:
- have a valid and detailed business purpose provided in PNC ActivePay.
- Are in compliance with all applicable University policies and funding agency regulations.
- Coordinate ProCard applications
- Establish and communicate any necessary departmental guidelines or procedures
- Notify the PCA of any cardholder terminations or transfers (within University departments)
- Monitor all communications that are provided by Procurement Card Administration
The goal of the Procurement Card Program is to streamline the procurement process while improving the flexibility and speed with which goods and services are received. With the approval of the manager, the ProCard is intended for any full-time faculty or staff member authorized to make University purchases. With a few exceptions, the card should be used whenever possible to make University purchases and to pay for University-related travel and business related expenses.
4.1. OVERALL ADVANTAGES
- No waiting for reimbursements or payments
- The ProCard can be used anywhere that accepts Visa, providing flexibility to the user
- Quicker delivery of goods and services
- Entire system is online, providing for electronic review and approval
- One central location and dedicated staff members for questions
4.2. ADVANTAGES TO THE CARDHOLDER
- No need to advance money out of your pocket for purchases
- Purchases can be made quickly, even outside of normal business hours
- Paperwork is completed after the purchase and does not hold up the order process
- Verification and reconciliation of transactions can be done at www.pncactivepay.com online, on or off-campus
- Travel and business related reporting process is easier
4.3. ADVANTAGES TO THE APPROVER
- Reduced need for check and purchase requisitions
- More flexibility in managing your budgets
- Can set monthly credit limits for cardholders
- Less paperwork at the start of the purchasing process
- Electronic approval and oversight
- Posting of transactions to PNC ActivePay is usually done within 48 business hour
4.4. ADVANTAGES TO THE UNIVERSITY
- Overall reduction in paperwork, especially for small dollar transactions
- Uniform training for all ProCard holders
- Electronic system from start to finish
- Payment processing time reduced
5.1. NEW PROCARD REQUEST
ProCards will only be issued to full-time Loyola University Chicago faculty or staff who have a consistent and genuine spending need and who obtain approval from a direct supervisor and/or upper management. ProCards will not be issued to part-time employees, on a temporary basis or for one-time spending needs.
To request a new ProCard, individuals and their supervisors must complete the ProCard Application form and must provide a justification and description of anticipated spending needs. Applications can be sent to the PCA (via e-mail, fax or inner campus mail) for evaluation, approval and issuance. Once the PCA has approved and processed the ProCard application, the cardholder will be asked to attend a Procurement Card introduction and training session where they will sign the Procurement Card Employee/Cardholder Agreement and receive their card. Before being used, all ProCards must be activated by calling the toll-free number printed on the card. For verification purposes, the cardholder will be asked to provide the last four digits of his/her social security number and/or mother’s maiden name.
ProCards will be issued in the employee’s name, however personal credit history will not be checked, nor will use of the ProCard affect the employee’s personal credit history. Loyola University Chicago is responsible for payment of all ProCard transactions. New ProCards may take 7-10 business days from when the application is processed.
5.2. EXPIRED CARDS
PNC Bank will automatically renew and issue cards upon expiration. These cards will be sent to the PCA who will facilitate distribution. Reissuance of cards scheduled to expire will occur one (1) month prior to the stated expiration date.
5.3. NAME CHANGES
Requests to receive a new card in order to reflect a name change (e.g., surname changes due to marriage) should be e-mailed to the PCA e-mail box atProCard-Admin@luc.edu. Changing a name on a ProCard will not require a new 16-digit credit card number.
5.4. NEW PLASTIC
Anytime a card will not swipe or when the 3-digit CVC/CVV code on the back of the card cannot be read, cardholders should request that a new plastic be issued. These requests can be e-mailed to the ProCard Administration e-mail box atProCard-Admin@luc.edu. The issuance of new plastic will not require a new 16-digit credit card number.
5.5. ACTIVEPAY ACCESS
All cardholders and their supervisors and managers will be given access to view ProCard transactions online atwww.pncactivepay.com. To access this site, an Organization ID (Loyola), a User ID and a Pass Phrase must be entered.
5.5.1. PASSWORD RESETS
Requests to reset a forgotten or misplaced password can be e-mailed to the ProCard Administration e-mail box at ProCard-Admin@luc.edu.
Cardholders are primarily responsible for safeguarding the ProCard and must do their part to mitigate the risk of ProCard exposure. The following guidelines have been established by the Payment Card Industry Data Security Standards (PCI-DSS) and other related University policies:
6.1. PROCESSING TRANSACTIONS, MAKING PAYMENTS OR PLACING ORDERS
It is a violation of the ProCard policy to share the physical card and/or card number with anyone (e.g., supervisors, co-workers, family members, friends, etc.). Transactions made with a ProCard should ONLY be processed by the person to whom the card was issued. Moreover, ProCards cannot be transferred from one employee to another (when someone leaves the University, changes departments or no longer requires a ProCard), as they are issued to an individual and not to a department (see 5.1. NEW PROCARD REQUEST).
6.2. E-MAIL AND INTERNET SECURITY
Because e-mail lines are not secure, cardholders should NEVER e-mail their full 16-digit ProCard account number to anyone (including both external merchants and internal Loyola ProCard Administrators, supervisors or approvers). When completing online ordering at merchant websites, cardholders must always verify that the website address begins with “https”. The “s” indicates that the website is secured and encrypted. If the website address begins with only “http”, it is NOT secured and encrypted and using it can compromise your ProCard account number.
6.3. STORAGE OF PROCARD ACCOUNT INFORMATION
When storing ProCard statements and documentation, cardholders must ensure that full 16-digit credit card numbers are not listed on ProCard receipts, invoices or registration/order forms. When full 16-digit account numbers are displayed, cardholders must redact account numbers so that only the last four digits are visible. Furthermore, cardholders should never photocopy the front and/or back of a ProCard or store ProCard expiration dates or 3-digit CVC/CVV codes. Moreover, ProCard account information (full 16-digit account numbers, expiration dates, 3-digit CVC/CVV codes) may NOT be stored electronically on a University computer, server, electronic flash drive or optical storage device (e.g., CD or DVD). Instead, ProCard documentation should be marked confidential and stored in a secure place, behind a dual level of security (in a locked drawer/file cabinet, in a safe bolted to the floor, in a locked office, or behind a badge secured area). The destruction of any historical ProCard documentation (older than 7 years) that contains credit card information must be destroyed by a cross-cut shredder. If a company is hired to shred the documentation, a representative from your department must watch the hired company shred the documentation using a cross-cut shredding machine and documentation should be kept to support the witnessing of the document destruction.
6.4. LOST, STOLEN OR COMPROMISED PROCARDS
To prevent University (i.e., the cardholder’s department) liability for fraudulent transactions, it is extremely important to act promptly in the event a ProCard is lost, stolen or compromised. PNC Bank should be notified immediately at 800-685-4039. Once reported, PNC Bank will automatically issue a new 16-digit ProCard account number and will send a new ProCard to Loyola’s PCA. After reporting the lost, stolen or compromised card to PNC Bank, cardholders should complete a Transaction Dispute Form and submit it to PNC within 60 calendar days. It is the cardholder's responsibility to resolve all fraud issues.
7.1. MONTHLY CREDIT LIMITS, SINGLE TRANSACTION LIMITS AND DAILY TRANSACTIONS
ProCard monthly credit and spend limits are determined during the application process by the cardholder’s supervisor, department head and/or approvers and are approved by the PCA. All applications will be subject to certain limit defaults:
- Monthly credit limits will be limited to one of the following: $2,500; $5,000, $7,500 or $10,000
- Single day transactions will be limited to 20 per day
- A single transaction will be limited to $5,000
Any single transaction over $5,000 must be approved in advance by PCA. In addition, any transactions processed as an exception to the above limit must be reviewed and approved by two different individuals (i.e., Cardholder and ProCard approver), meeting the university's dual-signature policy for large dollar value transactions. Please note: requests may denied and alternate payment methods recommended by the PCA.
Splitting or dividing a payment into several smaller transactions to bypass the single transaction limit on the ProCard is NOT allowed. The full amount of a transaction must be charged at one time. For example, having a vendor charge three separate transaction of $3000 to payment of a $9000 invoice is not allowed.
Important Note: Certain Travel and Conference Registration expenses are allowable based on the vendor’s billing method.
In addition to an overall monthly credit limit, ProCards can also be set-up with limit restrictions to the ‘Travel and Entertainment (T&E)’ type purchases and ‘General Procurement (GP)’ type purchases groups. A card can have an overall monthly credit limit that is broken down based on a cardholder’s spending needs (e.g., Monthly Credit Limit- $2500: T&E - $1000, OP - $1500).
7.1.1. REQUEST FOR LIMIT INCREASE
Requests to temporarily or permanently increase a ProCards monthly limit, or to remove/change any other restrictions, must come from a cardholder’s supervisor, department head and/or ProCard approver. These requests must be justified and done in writing, via e-mail to the PCA. Final approval for a limit increase, or for changes to the restrictions placed on a card, will be determined by PCA.
7.1.2. AVAILABLE BALANCE INQUIRES
Inquiries about a ProCard’s current available balance can be accessed through PNC ActivePay or by contacting PNC Bank directly. When calling PNC Bank, the customer service agent may ask for the cardholder’s ‘Unique Identifier’, which are the last four digits of the cardholder’s SSN.
Important Note: When calling PNC Bank to determine a ProCards available balance, cardholders should determine the amount of credit available on the ProCards monthly limit and the amount of credit available in the T&E and GP purchase types. In order to complete a purchase, the ProCard must have sufficient funds available on the overall monthly limit and in the group corresponding to the type of purchase being made.
7.2. BLOCKED MERCHANT CATEGORY CODES
Every merchant that accepts a Visa card is assigned a four digit Merchant Category Code (MCC) that is used to classify the business by the type of goods or services it provides. Any MCCs that are not considered to be within the normal course of University business have been blocked on all ProCards (e.g., furniture, casinos, bars/pubs, liquor stores, ATMs etc.). Any attempts to process transactions at vendors with restricted MCCs will be declined. If a purchase with a legitimate business purpose has been refused due to a blocked MCC, the cardholder should contact the PCA to determine if the restriction can be lifted temporarily.
Each ProCard is setup by a University department number, allowing a cardholder to access only those accounting units corresponding to his or her department. Accounting units are added to a list accessible to an entire department and not to an individual ProCard user. When reconciling expenses, cardholders should only select accounting units for which they have been given approval to assign purchases to.
Important Note: Accounting units listed in PNC ActivePay are added manually and do not automatically reflect changes made in Lawson. Requests to add an accounting unit that is not in PNC ActivePay should be e-mailed to the PCA.
8.1. DEFAULT 6-DIGIT ACCOUNTING UNIT
All ProCards will be setup with a default accounting unit, as indicated on the ProCard application. Anytime a transaction posts to ActivePay, it will automatically be assigned this accounting unit. If necessary, the cardholder, ProCard approver or supervisor can assign a transaction to a different accounting unit in PNC ActivePay before it is downloaded.
Requests to permanently change a cardholder’s default accounting unit can be e-mailed to the PCA. Likewise, the PCA should be informed anytime a default accounting unit has been inactivated. Any transactions assigned to an inactive accounting unit at the time of download will be assigned to the department’s general budget accounting unit.
Important Note: Cardholders who have been given the authority to assign transactions to grants (5 and 2-series accounting units) must ensure that the expenses do not include charges for alcoholic beverages. See rules for “federally allowable costs” and “federally unallowable costs” as defined in OMB Circular A-21 and by the University’s Sponsored Program Accounting (SPA) department.
8.1.1 REDIRECTING EXPENSES BETWEEN DEPARTMENTS
If a cardholder needs to redirect a ProCard transaction to another department, the manager from the department of the accounting unit to be charged, must e-mail the PCA indicating which accounting unit and account to charge. The PCA can only redirect charges before they are downloaded to the general ledger. Once downloaded, an Expense Transfer Form must be completed and sent to the University’s General Accounting department.
8.2. DEFAULT 4-DIGIT ACCOUNT
In addition to an accounting unit, each ProCard transaction will also default to a 4-digit account based on the Merchant Category Code (MCC) assigned to the vendor (e.g., hotel charges will default to 6310-Professional Development, Meetings or Conferences). The cardholder, supervisor or ProCard approver should select the appropriate 4-digit account from the drop down of accounts listed in PNC ActivePay. It is the department’s responsibility to ensure that transactions are expensed to the proper 4-digit account.
Important Note: According to OMB Circular A-21, “costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities) are unallowable” on grants (5-series accounting units). Entertainment costs must be covered by other funding sources. Costs for Food Service/Catering (6321) or Professional Development, Meetings (6310), that are allowable on grants, should be coded accordingly in PNC ActivePay.
The ProCard may be used at any merchant that accepts Visa, except for those merchants assigned to MCCs restricted by the University. The ProCard may be used for in-store purchases as well as online, phone and mail orders (cardholders must take precaution to ensure that all methods are secured).
9.1. PURCHASING GOODS AND SERVICES
Cardholders are responsible for ensuring receipt of the materials purchased and for following-up with vendors to resolve any issues related to pricing, delivery discrepancies, damaged goods or application of sales tax. If, for any reason, it is necessary to return goods that have been purchased, the cardholder should contact the supplier and follow the directions provided for return of the merchandise. All efforts must be made to use the University’s Preferred Vendors and Suppliers. Cardholders that do not use these prequalified suppliers either due to emergency situations or sourcing issues should note that any transactions involving other suppliers such as Amazon, Costco, Wal-Mart, etc. will be automatically audited each month.
When attempting to procure goods or services for the University, cardholders must:
- Determine if the ProCard is the appropriate method for acquiring the goods or services needed
- Determine if the University uses a preferred vendor for the goods or services that are to be acquired
- Ensure that the vendor does not include sales tax in the price of the purchase, as the University is exempt from Illinois State Sales Tax (Important Note: Some vendors will request a copy of Loyola’s Illinois State Sales Tax Exemption Letter, in addition to the Tax ID number embossed on the ProCard.)
- Ensure that complete shipping instructions are given to the vendor, especially when the business/billing address of the ProCard does not match the cardholder’s mailing address
- Obtain supporting documentation (i.e., itemized receipts, invoices, confirmation documentation, etc.) from the vendor for ALL purchases
9.2. TRAVEL AND BUSINESS RELATED EXPENSES
All ProCard transactions are subject to the rules defined in the University’s Travel and Business Expense Policy. Cardholders should also be aware of their department’s and/or sponsor’s travel policies, as they may be more restrictive than the University’s. In addition, appropriate departmental approval for travel should be obtained before arrangements are made.
The following rules or regulations apply to ProCard usage as it relates to travel and business expenses:
- The ProCard may be used for business travel, business meals (within per diem limits) and other business related expenses
- Cardholders must arrange for the most economical means of travel. Additionally, Business Class reservations are allowable for international travel exceeding 8 hours on a direct flight and must be approved in advance in writing by the traveler's Senior Vice President.
- The ProCard may not be used to obtain cash advances, to pay for personal expenditures incurred while traveling or to pay for travel expenses incurred by anyone not conducting University business
- Supporting documentation must be provided and maintained for all transactions $25 and greater
- When lodging is required, cardholders may use the ProCard for personal meals at a per diem allowance as determined by the U.S. General Services Administration CONUS (Continental United States) rate for the location and time the event occurred.
- The ProCard may not be used for gasoline for personal vehicles. Instead, a mileage reimbursement must be requested via Expense Reimbursement Form
Important Note: Cardholders may use their ProCards to pay for LUC business related travel arrangements for other employees within their department, students and University guests rather than requiring these individuals to pay out-of-pocket and be reimbursed after the fact. However, these charges must be authorized and processed by the cardholder and the appropriate documentation to support any charges must be collected.
9.3. PREFERRED VENDORS AND SUPPLIERS
When choosing a vendor, cardholders should select those listed on the University’s Preferred Vendors and Suppliers List whenever possible. Vendors are selected based upon a variety of parameters (i.e., quality, special discounts or rebates). Using these vendors allows for the leveraging of purchases in order to maximize value to the University (e.g., preferred quality and pricing, enhanced customer service or timely delivery).
- Vendors are selected for the Preferred Vendors Listing using various performance measurement criteria. This criterion includes: e-commerce technology, advanced billing and invoicing processes, service excellence, and product quality to name a few
- The overall goal of the vendor selection process is to reduce the number of vendors of major commodities and services to the University
- The Purchasing staff works to develop vendor direct programs in as many of the major commodity areas as possible. These up-front agreements will allow you to purchase directly from vendors who are being monitored and measured for performance, product quality, and purchasing ease
- Purchasing staff, along with the members of the Vendor Selection Committee, select vendors based on procurement benefits to the entire University
9.4. QUALIFYING CHARGES
Examples of qualifying ProCard purchases include, but are not limited to, the following:
- All travel-related expenses (e.g., airfare, car rentals, taxis, hotels, meals, gas for rental cars, etc.)
- Business meals
- Books, periodicals and other business subscriptions (e.g., magazines and newspapers)
- Membership dues to business related professional organizations
- Registration fees for seminars, conventions, training courses, etc.
- University-owned vehicle expenses (no personal vehicle expenses, including gas)
- Art supplies
- Cellular equipment and services
- Chemicals for use at Lakeside campuses only (restricted for SSOM cardholders)
- Facilities fees
- Film and film processing
- Hardware supplies
- Lab equipment and lab supplies (restricted for SSOM cardholders)
- Utility bills
- Water service for department
Important Note: This list is not exhaustive. Any questions about whether or not a purchase should be put on a ProCard should be directed to the PCA.
9.5. PROHIBITED CHARGES
Examples of expense that should not be purchased on a ProCard include, but are not limited to, the following:
- Gift Cards and Gift Certificates
- PC Workstations (Apple, Windows, etc.) and Laptops (See section 9.6)
- Fax Machines and Printers
- Ebay, Ubid, Etsy, Newegg.com and other similar vendors
- Expenses representing the personal recognition of a Loyola Faculty or Staff member (e.g., gifts for or costs to recognize birthdays, childbirth or adoption, weddings, anniversaries, or Office Professional’s/Secretary’s Day.)
- Items for personal use Incentive or prize purchases for program attendees or research study participants on grant (5xxxxx), gift (2xxxxx) and certain research stimulation accounting units (103xxx and (1047xx).
- Payments to Independent Contractors
- Bio-hazardous materials
- Biological or bacteriological viruses purchased live
- Cash advances (ATM)
- Purchase of advanced commitments to be used at a future date (prepaid airline miles, discounted merchant vouchers or credits, etc)
- Fuel for personal vehicles
- Packaged alcoholic beverages
- Services involving labor, indemnity or insurance requirements
- Purchases of goods in excess of $5000 should NOT be on the ProCard unless approved by the PCA or Purchasing (when utilizing Grant Funds, also consult the appropriate Purchasing Policies and Buyer Actions Matrix)
- Vehicle purchase or lease
- Weapons, ammunition and detonating equipment
- Office Furnishings (Any wall mounted item, window treatment, carpet, furniture, etc.)
Important Note: This list is not exhaustive. Any questions about whether or not a purchase should be put on a ProCard should be directed to the PCA.
9.6. ALTERNATIVE PROCUREMENT METHODS
Due to University contracts or legal requirements, the use of the ProCard for the acquisition of certain equipment, materials, supplies and services will be limited. If a purchase does not fall within the stated scope of the limitation (listed below), the department may utilize the ProCard to initiate the purchase. Otherwise, the department should utilize traditional procurement procedures as described below:
- Gift Cards: Contact your purchasing agent for ALL gift card or gift certificate request. Gift card purchases are NOT allowed on the ProCard.
- Computers and computer equipment: PC’s and Laptops are NOT allowed on the ProCard. Contact your purchasing agent or your campus Information Technology Services department for ALL departmental computer needs. Through this consultation, you can determine if a standard “vanilla” computer workstation will fill your needs. Instructions will be given as to how you can place your order on the ITS Computer Purchases site.
- Interior furnishings: The University and School of Medicine has implemented strict standards for design of all spaces and consequently all purchases of furniture, carpet and window treatments must go through your respective Purchasing Department.
- Catering: Procurement of catering services should be coordinated through your campus caterer or food service vendor.
- Office machines and their repairs: The University has established maintenance and replacement contracts or services, covering some office machines (e.g., typewriters and fax machines). These types of expenses should go through the University or SSOM Purchasing Departments.
- Office supplies: The ProCard should not be used to purchase items available through our preferred office supply vendor.
All ProCard transactions $25 and greater must be supported by detailed/itemized receipts or other documentation. Cardholders should also be aware of their department’s or sponsor’s travel policies, as they may be more restrictive than the University’s. Credit card slips that show only the total of the transaction, and do not list the individual items purchased, are not acceptable forms of support. Photocopies, faxes and web receipts will be accepted.
Important Note: Cardholders will be required to send a reconciled ProCard statement attached with copies of all itemized receipts via e-mail to PCA each month. However, reconciled statements and original supporting documentation should be kept and maintained by the cardholder or his/her department for a recommended period of 1 year. It is the responsibility of the cardholder to ensure that full 16-digit credit card number, expiration date, or CVV security code are not listed on any ProCard documentation and are not stored with ProCard records. In the event this information is displayed on the documentation, the information must be redacted, or stricken, with white-out or a black permanent marker before submission to PCA.
10.1. IN-STORE PURCHASES
Anytime a purchase is made on-site, at a store, cardholders must request an itemized receipt.
10.2. ONLINE ORDERS
When ordering online, cardholders should print the order confirmation that lists the items purchased and the corresponding dollar amounts for each. In some cases, the order confirmation may appear as one of the last screens in the ordering process. In others, the confirmation may be emailed to the cardholder. Either will serve as valid documentation given that the items purchased and their prices are listed.
10.3. PHONE AND MAIL ORDERS
When ordering via phone or mail order, cardholders should instruct the merchant to send an itemized receipt directly to his or her address (via e-mail, fax or mail). Invoices sent directly from merchants to Accounts Payable will not be returned to the cardholder.
ProCard transactions made at hotels for lodging expenses must be supported with copies of detailed hotel receipts/statements. This documentation must include the name, location and date of the hotel stay and must also list out the separate amounts for each expense (e.g., lodging, meals, telephone, internet or miscellaneous [IRS Regulation – Section 1.274-5 I(2)iii(B)]).
ProCard transactions for airfare must be supported with itineraries that list the passenger name, dates of travel and the economy/coach rate. Boarding passes, copies of E-tickets or documentation indicating that the flight was actually used must also be provided.
Detailed/itemized restaurant receipts (as opposed to stub-receipts) should include the date, name of the establishment and itemization of purchase. Restaurant pull tab receipts and summary credit card receipts are not acceptable forms of documentation.
Important Note: When charging personal meals to a ProCard, while away on University business, cardholders must avoid exceeding the allotted per diem rate. In addition, when a registration fee or seminar cost includes specific meals, per diem rates must be reduced by the amount allotted for the meal being provided. Any amount charged to a ProCard for personal meals that exceeds a per diem rate must be reimbursed. Conference agendas should be kept to support per diem rates and should show whether or not meals were included.
10.7. CONFERENCES & SEMINARS
When charging conference registration fees or seminar costs, supporting documentation must include the breakdown of the charge indicating what the fee or cost includes. Conference agendas must also be kept to support meal per diem rates.
10.8. CELL PHONE EXPENSES
When departmental cell phone bills are paid for by ProCard, the cardholder is required to obtain detailed cell phone bills that list each call and must provide adequate substantiation relating to the cost, time and business purpose for each call as well as the business relationship between the employee and the person being called.
10.9. MISSING RECEIPTS
If a receipt is missing or does not itemize the transaction or if there is no business description included in the online reconciliation, the cardholder may be required to reimburse the University for the full amount the undocumented purchase. Anytime a receipt has been misplaced, the cardholder should request that the vendor provide a copy. In the event the vendor is unable to provide a duplicate receipt, the cardholder is required to complete the Missing Documentation Form for each transaction.
ProCard transactions are downloaded from PNC ActivePay to the General Ledger (Lawson) two times per month. Cardholders are required to log-in to PNC ActivePay, a secure, PNC Bank website that can be accessed on or off campus) to review transactions before each download. On the 3rd business day of every month, cardholders must print their monthly statement and complete a ProCard Monthly Reconciliation and Approval Form. The statement and copies of all supporting documentation are attached to this form and submitted to Procurement Card Administration via e-mail for audit, approval and archival.
11.1. TIMELINE FOR ONLINE TRANSACTION REVIEW AND APPROVAL
Before each download, cardholders are required to review and approvers are required to approve transactions online, at the PNC ActivePay site. Cardholders and approvers must log-in to PNC ActivePay to do this at least twice per month according to the following timeline:
- 1st Monthly Download: Transactions that post to PNC ActivePay from the 28th through the 15th of the month are downloaded on or around the 20th of every month.
- 2nd Monthly Download: Transactions that post to PNC ActivePay from the 16th through the 27th of the month are downloaded on or around the 3rd of the following month.
Important Note 1: Cardholders and budget administrators will receive e-mail reminders from the PCA before each download.
Important Note 2: The PNC Distributed Card program is based upon an accounting cycle that ends on the 27th of each month. The new cycle will begin on the 28th and conclude on the 27th of the next month.
11.2. CARDHOLDER RECONCILIATION
11.2.1. CARDHOLDER BI-MONTHLY ONLINE REVIEW
(See PNC ActivePay: Reviewing and Approving Transactions: Appendix F)
When reviewing transactions posted in PNC ActivePay, cardholders must:
- Select the appropriate accounting unit and account
- Provide detailed transaction notes for each transaction; describing what the charge was and its business purpose (notes on entertainment charges must also list the names of all individuals present and their affiliation with the University)
- Locate itemized receipts and appropriate supporting documentation
- Ensure that sales tax was NOT applied and seek reimbursement from the merchant for any charged in error
- Document and submit reimbursement along with a Personal ProCard Purchase Form for any personal expenses charged in error
- Check the reviewed box and click save
11.2.2. CARDHOLDER SUBMISSION OF RECONCILED STATEMENTS FOR APPROVAL
(See PNC ActivePay: Scheduling and Printing your Monthly Procurement Card Statement: Appendix G)
On the 3rd business day of every month, ProCard Monthly Statements are to be printed and reconciled with all supporting documentation, itemized receipts and invoices. This information must be received by Procurement Card Administration by the second Friday of the month.
- All documentation is to be attached to the statement in order, as the transactions appear on the statement.
- The statement submitted must be for the calendar month (1st to 31st) rather than the billing cycle (27th to 28th).
- Once the reconciliation is complete, cardholders will complete the ProCard Monthly Reconciliation and Approval form, attach it to the reconciled statement and copies of the supporting documentation.
- This packet is then submitted to Procurement Card Administration for audit, approval and archival. PCA recommends that cardholders and approvers submit scanned copies of all documentation to the ProCard Administration e-mail box at ProCard-Admin@luc.edu and keep all originals in their departmental files.
Important Note 1: When reconciling statements with receipts, cardholders must ensure that all supporting documentation is legible. Please DO NOT highlight information on receipts or statements because it makes it more difficult to scan and image these documents. In addition, please DO NOT tape over any inked areas of a receipt because this dissolves the ink making the receipt illegible and invalid.
Important Note 2: It is important that the cardholder review all documentation to ensure that no documentation includes a full 16-digit card number, expiration date or CVV security code. In the event this information is displayed on the documentation, the information must be redacted, or stricken, with white-out or a black permanent marker before submission to PCA.
Important Note 3: It is important that statement reconciliation and approval be done in a timely manner. Failure to provide documentation in a timely fashion will result in a suspension or termination of program privileges.
11.3. DEPARTMENTAL APPROVAL
11.3.1. ONLINE PROCARD APPROVER
(See PNC ActivePay: Reviewing and Approving Transactions: Appendix F)
When approving transactions posted in PNC ActivePay, approvers must:
- Ensure that the cardholder has entered detailed transaction notes (business descriptions) for each purchase (For example: Improper note-“flight” Proper note-“flight for IMF Conference in D.C. from 07/12/14 to 07/15/14”.)
- Change/correct any inaccurate accounting information (i.e., accounting unit and account)
- Ensure that all transactions have a valid/legitimate business purpose and are approved by the department
- Remind the cardholder to seek reimbursement for any sales tax charged in error
- Check the approved box and click save
Important Note: Approvers should only check the approved box for transactions that have already been reviewed. If transaction notes have not been added, the approver should contact the cardholder and ask him/her to review so that transactions can be approved before the download. If an approver suspects or finds examples of misuse, abuse, fraud or forgery, they must contact the PCA immediately.
Individuals granted access to a Procurement Card, by the University and their department, are accountable for all transactions related to their card. Consequences for misuse of the ProCard are serious, and may include re-training, card suspension, card revocation, disciplinary action, termination of employment and legal action.
It is the responsibility of the cardholder to ensure that all reconciled documentation is submitted to the PCA in a reasonable period of time each month. Failure to adhere to this policy will result in a disruption of ProCard privileges. In addition, recurring issues pertaining to policy compliance will result in full termination of cardholder participation in the ProCard program.