SOP-CARD-01: P-Card Roles and Responsibilities

Number: SOP-CARD-01

Subject: P-Card Roles and Responsibilities

Summary: Defines what each person who uses or is involved in the P-Card process is expected to do.

Source: University Procurement Services

Date of Issue: 03/12/2019

Date of Revision: 02/13/2024

Procedure

Roles

Responsible cardholders (cardholders for short) are responsible for authorizing P-Card users within their department(s). Reconciliation and review of P-Card expenses in Chrome River must be completed in a timely manner to ensure policy compliance.

Roles have been established to facilitate these responsibilities in accordance with IU’s separation of duties requirement that at least two employees must be involved in the reconciliation process to help prevent error and misuse.

Responsibilities

Purchaser

It is the responsibility of the purchaser to substantiate any purchase made with the P-Card. In the case of an audit, purchasers/departments will be called upon to explain and prove the legitimacy of an expense.

Purchasers are also responsible for ensuring sales tax is not charged as appropriate. For the convenience of IU’s P-Card holders, the sales tax exemption number is printed on the face of all P-Cards. If sales tax is charged, contact the merchant, and request a credit for that amount.

Cardholder

Cardholders must demonstrate prudent judgement and ensure funds are always used for university benefit, never for the purpose of personal benefit or privilege of a university employee. All procurement card expenses must meet the criteria of a bona fide business expenditure under the university’s accountable plan.

The following help ensure the responsible use of university funds:

• Becoming familiar with the National Association of Educational Procurement (NAEP) Code of Ethics to align your procurement standards with IU Procurement Services.
• Being mindful that IU is a publicly funded university and that its employees have a duty to ensure that its resources are spent in a responsible and efficient manner.
• Contacting Card Services via the Support Form for guidance if you are unsure about the appropriateness of an expense.

Cardholders must complete the P-Card Essentials training course before a P-Card will be issued. This includes new cardholders added to existing P-Card accounts. The cardholder will not be updated until training compliance is verified by Card Services staff. P-Card Essentials should be completed prior to applying for a P-Card or requesting changes to an existing account.

Transaction Approver

Fiscal officers, and by extension transaction approvers they put in place, are responsible for ensuring the propriety and reasonableness of all procurement card expenditures in adherence with policy FIN-PURCH-07: Procurement Card Program as well as policy FIN-ACC-620: Reimbursement Under the Accountable Plan.

Reconciler

A reconciler is established when the cardholder and transaction approver are the same individual. Reconcilers are created by granting delegate access to the cardholder’s Chrome River eWallet. Reconcilers review and substantiate P-Card transactions so they may be reviewed and approved by transaction approvers.

Inappropriate Use

The university will seek restitution for any inappropriate charges made to the card. Fraudulent or intentional misuse of the card may result in disciplinary action up to an including employee termination and/or revocation of P-Card privileges. Violation of state statutes may result in civil or criminal penalties.

The Associate Vice President of Procurement Services reserves the right to restrict or revoke credit card delegation to specific departments or individuals for failure to adhere to purchasing policies and regulations or as circumstances warrant.

Definitions

Cardholder:

Employee whose employee ID is tied to the card and on file with US Bank.

Purchaser:

Employee authorized by responsible cardholder to use the card.

Reconciler:

Employee charged with attaching receipt and supporting documentation to the expense report to complete the audit record and to document and rectify any non-compliant transactions.

Transaction Approver:

Fiscal officer, or individual put in place by the fiscal officer, who reviews and approves reconciled transactions.