Section: Procurement & Contracting Number: 70.100
Title: Purchasing - Procurement Card








    This policy sets forth basic system-wide standards for the establishment and administration of a procurement card program at Oregon University System (OUS) campuses. This policy gives overarching guidelines under which each OUS campus may establish and administer a procurement card program. It is the responsibility of each campus administration that desires to establish and administer a procurement card program to develop institution-specific policies that follow the guidelines established herein.

    This policy supersedes FASOM Section 13.11: Purchasing -- Procurement Cards.


    The OUS has established a procurement card program (Program) to provide for the rapid acquisition of low dollar value items without a significant portion of the costs inherent in public purchasing, and the efficient handling of student group and team travel expenses. The primary purpose of the Program is to streamline operations and eliminate unnecessary administrative costs.

    OUS maintains a system-wide contract with a bank to provide procurement cards to purchase goods and services for the System. The bank issues procurement cards to employee custodians in the name of institution/Chancellor’s Office departments. Authorized departmental users purchase goods and services using the procurement card. Only student group and team travel expenses are allowed on group/team cards that are issued separately from department procurement cards.

    In order to fully utilize the procurement card and realize the associated administrative efficiencies and cost savings, OUS seeks to ensure that the policies and procedures related to procurement card programs administered by OUS institutions are documented, communicated, clearly understood, and consistently applied. Establishing sound policies to guide the use of the procurement card within OUS is important to ensure compliance with state and federal laws, rules, and policies, including Federal OMB Circular A-21 and Federal Acquisition Regulations.

    .120  AUTHORITY


    Approved by the Associate Vice Chancellor for Finance & Administration/Controller on 02/01/08. The effective date of this policy is 02/01/08 with full implementation based on each campus's implementation plan. 


    All institutional and Chancellor’s Office personnel should be knowledgeable of this policy.


    Budget Authority: The individual who is responsible for the budget of a department or division of an institution that has authorized one or more procurement cards for the purchase of appropriate goods and/or services.

    Procurement Card Program Administrator: The individual who is responsible for the administration of the procurement card program of an OUS institution/the Chancellor’s office. The Procurement Card Program Administrator is responsible for ensuring that the institution procurement card policies are compliant with the OUS policy, that the policies established by the institution are implemented, and that the procurement card procedures are being followed.

    Card Custodian: The individual who is responsible for safeguarding the procurement card of a department or division of an institution, maintaining complete and accurate records of procurement card use, and preparing reconciliations between the documents supporting charges on the procurement card and the statement of charges received from the procurement card vendor in compliance with institution and OUS policies.

    Card User: An individual authorized to procure goods and/or services with a procurement card of a department or division of an institution.


    Responsibilities relating to the establishment and administration of a procurement card program include the following:



    • Developing institution-specific procurement card policies
    • Carrying out all aspects of procurement card administration set forth in this policy and campus specific policies


    Budget Authority: The Budget Authority is responsible for reviewing all charges against department funds, including procurement card charges, to determine appropriateness and reviewing the monthly reconciliation of the card activity to the monthly statement. Additionally, the Budget Authority is responsible for requesting and authorizing the use of one or more procurement cards for use by his/her department and for authorizing a departmental employee to be the Card Custodian for the department.

    Procurement Card Program Administrator (Program Administrator): The Program Administrator is authorized by the institution Vice President for Finance and Administration to implement and maintain a procurement card program at his/her institution. Responsibilities include, but are not limited to:

    • Development and maintenance of a comprehensive Program policy
    • Establishment of an institution-specific training program (if institution policy differs from the system-wide policy)
    • Maintaining a comprehensive listing of card users, card custodians, and budgetary authorities
    • Ensuring that all persons involved in the Program have completed any training required by policy (see .710 of this policy for procurement card policy knowledge test)
    • Issuance of procurement cards
    • Establishment and maintenance of a monitoring program that is designed to help ensure the following:
      • expenditures charged through the Program are appropriate and within policy
      • complete and proper documentation supporting card charges are retained
      • use of each card is by authorized card users
      • fraudulent activity is identified and minimized
      • monthly reconciliations are performed as required
      • distribution of procurement card expenditures to appropriate account codes (see .350)

    Card Custodian (Custodian): The departmental representative charged with the responsibility to hold departmental procurement cards in safekeeping until needed by authorized card users. Other responsibilities include, but are not limited to:

    • Ensuring complete and proper documentation supporting card charges are obtained and retained
      • Examples include sales slips, cash register receipts, invoices, order forms, and receiving reports. Charge slips that do not itemize expenditures are inadequate documentation in and of themselves. When no other documentation exists, such as when making a telephone purchase, a purchasing log will be maintained to record transactions.
    • Ensuring that all card users have completed required training (see .710 of this policy for procurement card policy knowledge test)
    • Maintaining procurement card usage log as required for multi-user cards
    • Monitoring card transactions for appropriate use
    • Monitoring card activity for fraud
    • Reporting questionable transactions to Budget Authority and Program Administrator
    • Performing a monthly reconciliation of the detail transactions with purchase records and processing journal voucher(s) to redistribute charges or credits to the appropriate accounts

    Card User: Person authorized to use a procurement card to make purchases of goods and services on behalf of a department of an institution. Responsibilities include, but are not limited to:

    • Maintaining an understanding of the policies guiding procurement of goods and services, including those specifically related to the use of the procurement card
    • Safeguarding the card and the card number(s)
    • Limiting the use of the card to purchases that are authorized by policy
    • Personal responsibility for non-business charges (see section .240 Allowable Amounts and Appropriate Account Codes)


    In order to implement and maintain a procurement card program at an OUS institution/the Chancellor’s Office, the institution must first establish its own policy governing the operation of the Program that conforms to this system-wide policy. Once the policy has been established, a Program Administrator must be named and trained on the administration of the program.

    A Procurement Card Application and Agreement (Agreement) obtained from the Program Administrator is completed and signed by the Custodian, as well as the other employees authorized to use the card. The Budget Authority approves the Agreement and the Program Administrator requests the card from the bank. After the card is issued, additional authorized users must sign the Agreement and the Program Administrator must be notified that the new user was added. Similarly, when an authorized user is removed or terminates employment, separation procedures will be followed to ensure that their name is removed from the authorized card user list and that all parties involved in the Program, including the Budget Authority, Program Administrator, and Custodian, are notified on a timely basis.


    Based on the amount of anticipated expenditures to be made on a particular card, the Program Administrator will place a limit on the amount of charges allowed on each card during each billing cycle.


    Purchases from vendors that accept credit card payments may be charged to a procurement card, except as prohibited by section .240. The procurement card is designed to promote purchasing efficiency, flexibility, and convenience. The following is a partial listing of typical uses:

    • Office supplies
    • Teaching and research supplies
    • Materials for minor repairs
    • Non Capitalized Furniture & Equipment
    • Conference registrations
    • Subscriptions to newspapers, journals and periodicals
    • Reference materials such as books, particularly those purchased from another country due to exchange considerations
    • Travel expenses for student groups or teams


    Use of a procurement card is prohibited for cash advances and personal or non-business purchases.

    Except for group or team travel cards, use of a procurement card is generally prohibited for travel costs (39000 account codes). Institutional policy may allow for use of a procurement card for conference hotel reservations and payments, and for rental car reservations. Institutional policy applies regarding use of procurement card versus ghost accounts for purchase of common carrier fares. Use of the procurement card will not provide insurance coverage that the travel/ghost cards provide.

    For purchases other than library acquisitions (account code 40190), use of a procurement card is prohibited for capital outlay (40XXX account codes) due to fixed asset inventory recording requirements.

    OUS institutions have the option, with the approval of the institution's director of Business Affairs, to allow use of the procurement card for purchases associated with account code 40199 (Construction in Progress [Equipment]). The institution must establish sufficient controls to ensure that procurement card charges to account code 40199 are capitalized in Banner Fixed Assets.

    Use of a procurement card is prohibited for the following account codes due to W-2 tax reporting requirements, unless campus policies and procedures provide for the required W-2 reporting:

    • 10780  Employee Moving Expenses - Taxable
    • 10781  Temporary Living & Supplemental Allowance – Employee
    • 10782  Settling-In Allowance – Employee
    • 10783  Storage of Household Goods – Employee
    • 10784  Dependent Assistance Tuition & Fees – Employee
    • 10785  Dependent Assistance – Other – Employee
    • 10786  Utilities and Maintenance – Employee
    • 10787  Housing Rentals – Employee
    • 10788  Cost-of-Living/Post Allowance – Employee
    • 10790  Moving-Employee – Non-Taxable
    • 28502  Overtime Meal Allowance
    • 28532  Hiring Incentive
    • 39712  Employee Travel – Taxable
    • 39713  Dependent of Employee Travel - Taxable


    All bank charges, including interest and late charges, are absorbed by campus accounts.


    Disputes regarding charges, products or services must be resolved with the merchant or bank as appropriate. Any refund or adjustment obtained from the vendor is credited to the department.


    If the card is lost or stolen, the Card User or Custodian, depending on who had custody of the card at the time of the loss, shall report the loss immediately to the procurement card vendor bank as instructed by bank and to the Custodian, Program Administrator, and Budget Authority.


    A misused procurement card may be cancelled and returned to the bank. Department management, in consultation with Human Resources if appropriate, is responsible for taking appropriate disciplinary action consistent with applicable personnel policies.


    Each campus Program Administrator will develop and implement a post transaction review program that includes periodic post transaction reviews of procurement card use and testing application of key controls.


    Each campus and the Chancellor’s Office will establish and maintain a formal compliance monitoring program that will include the following:

    • Reviewing transaction data for compliance on a set schedule
    • Reviewing the listing of MCC codes that are blocked by institution policy (blocked MCC codes should be documented in the institution Program policy, or are codes that the campus deems susceptible to misuse)
    • Reviewing account codes used for procurement card charges for potential inappropriate purchases
    • Reviewing transaction descriptions for distributions made within the procurement card module for potential inappropriate purchases
    • Reviewing usage frequency of each card at least annually for inactive or infrequently used accounts, documenting action taken
    • Assessing procurement card provider monitoring system(s) and implementing as deemed appropriate and cost-effective
    • Reviewing card activity levels at least annually and resetting card spending levels accordingly


    The System, in conjunction with the campuses, will develop and maintain a web-based training program (see .710 of this policy for procurement card policy knowledge test) that will focus on the key provisions within the System Program policy, as well as other applicable System policies. Each campus will develop and implement a training program, as needed, to focus on key provisions of campus-specific Program and related policies.

    Each campus will ensure that all card users, custodians, program administrators, and budgetary authorities who authorize payments have been provided required initial training. Card users, custodians, program administrators, and budgetary authorities must complete ongoing training when changes in System or campus Program policy dictate. Failure to complete the required training will result in revocation of the authority to use the card.


    Each campus will develop and implement separation procedures that include cancellation and re-issuance of a departmental procurement card when a budgetary authority or card custodian separates from their position.


    Each campus will develop and implement policy and procedures related to inappropriate use of the procurement card. At a minimum these policies and procedures will adhere to IMD 6.009 Financial Irregularities and will address:

    • card cancellation triggers, including, but not limited to, fraudulent activity
    • consequences for inappropriate use


    Exceptions to the System and campus procurement card program policies should be kept at a minimum. In the rare case where an exception to either or both of these policies is granted, the campus granting the exception will document the exception in writing, including evidence of appropriate approvals. Exceptions to this system-wide policy must be approved by the Associate Vice Chancellor for Finance & Administration/Controller. Exceptions to campus policy must be approved by the Vice President for Finance & Administration or designee.


    Each campus will develop and implement policy and procedures to accomplish the distribution of procurement card expenditures to appropriate account codes at least quarterly.

    .360 FORMS

    Each procurement card program shall include forms that capture the following information:

    • The responsibilities of the card custodian, card users, and the budget authority (their signatures are required as an acknowledgement) and policy and procedural information, as identified by the campus.
    • Log that includes at a minimum: date of purchase, user name, vendor name, purchase description, and amount.

    Sample forms for the Procurement Card Program are shown in the policy appendix, section .700 Forms. Note that these forms must not include confidential information such as social security numbers or the full procurement card number. These forms are provided as samples and not required templates. Institutions may choose to use these forms or they may create their own forms.


    Direct questions about this policy to the following offices:

    Subject Contact
    General questions from institutional personnel Procurement Card Program Administrator
    General questions from institutional central administration and Chancellor's Office personnel Associate Vice Chancellor for Finance and Administration and Controller


    .695  HISTORY

    02/01/08 - Approved

    04/04/08 - Updated

    07/01/08 - Updated

    08/07/08 - Updated

    06/01/09 - Updated

    08/03/09 - Updated

    07/15/11 - Updated

    Policy Last Updated: 07/15/11




    1. Purchasing Card Application (sample)
    2. Purchasing Card User Agreement (sample)
    3. Purchasing Card Departmental Agreement (sample)
    4. Signature Authorization Agreement (sample)
    5. Purchasing Log (sample)
    6. Dispute Form
    7. Faculty/Team Leader Responsibilities Agreement - Group/Team Travel (sample)


    See the Procurement Card Administration - Index Page

    Appendix Last Updated: 08/07/08