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Policy Statement and Purpose

Policy Statement & Purpose

The Seattle Pacific University Purchasing Card (P-Card) is a convenient and efficient method of purchasing specific goods and services while ensuring compliance with all relevant University policies and regulations. P-Cards are generally to be used for low-value, low-risk expenditures.

SPU is responsible with managing its resources with fiscal prudence and in conjunction with legal and regulatory standards. This policy outlines permissible uses of a P-Card and defines relevant purchasing and approval measures.

Entities Affected by Policy

All University Faculty and Staff.

Eligibility

Prospective P-Card holders are required to meet each of the following requirements:

• A full-time or part-time faculty or staff member of Seattle Pacific University

• A United States resident

If you meet these eligibility requirements, then please follow the Purchasing Card Registration Process.

Students and temporary faculty & staff are not eligible to hold an SPU P-Card.

Training

Approved cardholders will be required to attend a live training session.

Responsibilities of a P-Card holder

Individual P-Card holders are personally responsible for managing their assigned P-Card, ensuring that all transactions carry a legitimate business purpose, and regularly reviewing and reclassing completed transactions. P-Card holders must adhere to the following rules and responsibilities:

• Obtain receipts:

  • WA State Department of Revenue requires all purchases regardless of location to have sales or use taxes paid.

  • If there is no sales tax included on your receipt, contact Finance.

• Reclassify the expenses each month.

• Submit all receipts to Finance.

  • Please note: Previously, receipts were only required if expenditures related to lodging, were grant-related, or exceeded $75. As of 10/21/2024, Finance is requiring that all receipts are delivered to the Finance office.

• Keep your card safe; do not share the use of your card with anyone.

• Report missing or stolen cards immediately to the bank and inform Finance (pcard@spu.edu).

• Inform pcard@spu.edu when you are leaving the organization or if you are changing roles within the organization.

Appropriate Uses of a P-Card

University P-Cards are to be used for legitimate business purposes only. Examples of appropriate uses of P-Cards include:

• Conference registration fees

• Subscriptions

• Local purchases where there is no time to wait for next day delivery

• Small dollar purchases when a purchase order (PO) is not necessary

• Local food and entertainment department expenses when in compliance with LINKthe Travel & Entertainment Policy

• Travel related expenses, such as hotel accommodations, car rental, taxi rides etc. in compliance with LINKthe Travel & Entertainment Policy

Inappropriate Uses of a P-Card

University P-Cards are not to be used for personal purchases; cash advances and cash refunds are prohibited. Examples of inappropriate uses of P-Cards include:

• Personal purchases

• Amazon purchases

  • Please note: All Amazon purchases must be made through SPU’s central Amazon Business account as of 10/18/2023. For more information, please visit the Amazon Business wiki page: Amazon Business

• Any item exceeding the card’s pre-established transaction limit

• Cash advances

• Excluded, high risk merchant categories codes (MCC)

• Alcoholic beverages (see LINKthe Travel & Entertainment Policy)

• Purchases split into multiple transactions to bypass the single transaction dollar limit

Transaction Limits

Purchasing cards have a single-purchase limit of $2,000 and a monthly limit of $5,000.

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Alternative transaction limits may be granted (temporarily or permanently) in special circumstances. Please reach out to pcard@spu.edu regarding any related inquiries.

Required Documentation

The IRS requires the University to retain records as follow:

• Please note: Previously, receipts were only required if expenditures related to lodging, were grant-related, or exceeded $75. As of 10/21/2024, Finance is requiring that all receipts are delivered to the Finance office.

• All receipts related to lodging.

• Names of all attendees (first and last names) at a business event or meal/refreshment.

  • Note: The IRS only requires the total number of attendees if it exceeds ten attendees. However, per the University policy, list names of all attendees.

A credit card statement is not considered an adequate record for IRS purposes.

Credit Card Security

Keep your Visa purchasing card in a secure location and safeguard your account number at all times. You, as the cardholder, should be the only one using the card.

Consequences of Non-Compliance

In the event that a P-Card holder violates the SPU P-Card policies and procedures, the cardholder may be subject to any of the following sanctions if deemed appropriate by the University:

• Permanent revocation of P-Card privileges.

• Assignment of wages for repayment of discrepancies.

• Disciplinary action up to, and including, termination of employment and legal action.

If a P-Card holder fails to submit statements and receipts to Finance within 60 days of the statement date, then P-Card purchases may be taxed on the cardholders cardholder's next payroll. These expenses are considered out of compliance with the accountable plan date-related safe harbors.

Audits

To ensure the continued success of the P-Card program, and in order to meet SPU’s audit requirements, periodic audits of the cardholders’ cardholder transaction files will occur. The primary purpose the audits are to ensure the following:

• P-Card purchases reflect legitimate business needs of the institution.

• P-Card purchases adhere to University purchasing policies (insert purchasing policies)the SPU Purchasing Policy

• Accurate reviewal and approval processes are being regularly conducted.

• Expenditures are being accurately reclassed and reallocated

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Contact Information

For all P-Card related inquiries, please contact the SPU Purchasing Card Administrator at pcard@spu.edu