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Purchasing Card Procedures

1. Overview

The Purchasing Card Procedures section is intended to provide Cardholders with information about the Barnard College American Express Purchasing Card (the "P-Card") program and to familiarize them with their responsibilities as Cardholders.  

This purchasing card is accepted worldwide at any location that accepts either the traditional American Express Card or the American Express Purchasing Card.   The Purchasing Card is very similar to a bank charge card or credit card.   However, the department name appears on the P-Card and the charges are paid directly by Barnard College.   The P-Card process is intended to replace the less efficient and more costly purchase order (PO) and payment processes for purchases $500 and under.   This streamlined process allows for better controls over purchases and deliveries.

2. Uses and Restrictions of the Purchasing Card

Uses of the Purchasing Card :

The Purchasing Card is to be used whenever and wherever possible for acquiring goods and services ($500 and under) on behalf of Barnard College and must be used in compliance with the College's expenditure and purchasing procedures.   Please note the following:

•  The P-Card is a charge card and must be used in such a manner that will ensure the security and safekeeping of the P-Card and its account number at all times.   The Cardholder is responsible for keeping the P-Card secured on Barnard premises unless required to make off-site purchases.  

•  The P-Card is the required method for the purchase of small dollar value ($500 or less) for miscellaneous expenses, materials and services.   Exceptions will be made where vendors do not accept American Express.   Types of commodities and services that can be charged are:

• business meals
• subscriptions
• registrations
• books
• brochures, catalogs and price lists
• promotional supplies
• dues & memberships

•  Internal procedures should be set up in each department so that proper authorization is given to make purchases.

•  The Department should determine that the price quoted is the best that can be obtained.   Contact the Purchasing Department for special pricing available.

•  Ensure that no sales tax is charged.   The College is exempt from New York Sales and Use Tax.   The College's tax exemption number is printed on the P-Card.  

Restrictions of the Purchasing Card :

The Purchasing Card is for official business use only.   It may not be used for personal purchases and it may not be used for travel (airfare, hotel or automobile rentals).   In addition, the P-Card CANNOT be used to purchase the following items:

• Cash advances or cash awards including honorariums
• Construction or remodeling
• Employee Benefits: entertainment, tuition
• Furniture and Equipment
• Fines, late fees, penalties (including parking tickets)
• Personal purchases
• Gifts
• Service Contracts
• Special Services: Independent Contractors, performers, consultants, speakers
• Student tuition, scholarships or stipends
• Travel (any lodging, hotels, motels, airline tickets, etc)

Cardholders cannot split transactions into smaller amounts to avoid dollar limits placed on the P-Card.   If you need to purchase an item above the limit, please contact the Purchasing Department or the Budget Director for special consideration to temporarily increase the transaction limit.  

Please note that additional restrictions may be placed on expenses that are allocated to grant accounts.   Contact the Assistant or Associate Controller for information about additional restrictions for grant accounts.   P-Card privileges may be revoked, temporarily or permanently, by Barnard College if a Cardholder fails to comply with the Purchasing Card Procedures.  

Purchasing Limits :

Purchase amounts are limited as follows:

•  $500.00 plus 10% allowance for shipping and handling - maximum per transaction

•  $1,500.00 aggregate transaction limit per month unless otherwise approved by the Budget Director.  

3.    The Purchasing Card Process

How to Apply:

• Purchasing Cards can be issued by departments that have been assigned a general ledger account number.   Applications can be obtained by contacting the Purchasing Department.
• The official Cardholder is the designated budget officer for each department (Department Chair, etc.)   The Cardholder will receive a copy of the procedures and sign for receipt of the card as well as acknowledgement of the guidelines. All prospective Cardholders must sign a Cardholder Agreement Form to be eligible to receive a Purchasing Card.
• The Cardholder must designate a department P-Card custodian who will have responsibility for reconciling monthly statements, submitting all paperwork and retaining appropriate backup for department audits.

How to Make a Purchase :

Purchasing with the P-Card is simple.   Just follow these steps:

• Call, visit, order through the Internet, or fax the supplier that you selected.   Be specific about the item and quantity that you are ordering.
• A Purchasing Card is not a Corporate Card.   Please make the distinction when ordering on-line or by telephone.
• Ensure that the supplier has the proper department name and address when placing an order.
  
  Department Name/Barnard College
  3009 Broadway
  New York, NY   10027
  
• If you are not the Cardholder for the P-Card and you are making a purchase in person, you will be required to provide a letter from your department authorizing use of the card and to present your valid Barnard College ID when making a purchase.

How to Receive an Order :

When you receive an order:

• Verify that the supplier filled the order correctly.   Check the contents of the package or verify that all the items you ordered were delivered.
• Make sure that the supplier charged you correctly and did not include sales tax.   If there is an error or damaged goods, contact the supplier directly.
• Sign and date the packing slip or receipt.   If the charge amount is not listed, write the total cost that you were quoted on the packing slip or receipt.
• Note all received orders on your Transaction Log immediately (see Monthly Reconciliation).
• Keep the packing slip or sales receipt from every delivery or purchase.   (See Monthly Reconciliation).

How to Dispute a Charge :

Occasionally, billing errors may occur.   For example, you may be charged sales tax, or you may be charged for goods and services that you did not receive.   Remember that, by law, suppliers may not bill you for purchases until your order is ready for shipment.

If there is a suspected error with a legitimate charge, the Cardholder should contact the supplier. If the error is confirmed, the supplier should be instructed to issue a credit against the applicable P-Card account. This should be noted in the department's Transaction log. (See Monthly Reconciliation)   The credit should appear on the next monthly American Express statement.

•  If the Cardholder contacts a supplier and they are unable to reconcile a difference in a charged amount, the Purchasing Department should be contacted for assistance.

•  If billing or returned item disputes cannot be resolved with the supplier within 30 days, the Cardholder must contact American Express Customer Service at 1-800-492-4920 and follow the instructions they provide. American Express will issue a temporary credit while the dispute is investigated.  

4.    Monthly Reconciliation

a. On a monthly basis, the Cardholder will receive an individual P-Card statement. If you did not make any purchases, you will not receive a statement.

b. Departments will verify charges, assign account numbers, sign and forward the original bill to the Purchasing Department.   Departments are responsible for returns and exchanges and following through on appropriate credits.   The Purchasing Department should be notified of returns and pending credits.

c. Keep track of your purchases throughout the month by maintaining a Transaction log.   The transaction log should be kept in Excel (or other similar format) and should include the following information:

• Order date
• Requestor or person for whom you placed the order
• Vendor name
• Total amount of the order, including shipping and handling
• Date the item(s) was received
• Business purpose of the purchase - including attendees of business meals, etc.
• Account number

d. Purchasing Department should receive:

• Original bill - approved and dated by Cardholder*.
• Allocation of expenses to general account numbers.
• Completed and signed Transaction Log.

Departments should retain the following records:

• Copies of original bill.
• Copies of Transaction Log.
• All original receipts and packing slips.

* If any charge is paid for by the Provost Office, an additional approval and coding is required by a representative of the Provost's Office.   If the appropriate Provost approval is not obtained before the required deadline, the individual department will be charged.

All required documentation must be submitted to the Purchasing Department no later than 7 business days from the date of receipt of the monthly American Express statement.   Records should be kept for 7 years at the Cardholder's location.

e. Accounts Payable will perform the following procedures on a monthly basis:

• Receive and process monthly purchasing card billing statement for payment and input to general ledger.
• Perform post-audits of purchasing card transaction activity to ensure proper functioning of the Program.
• The purchasing card billing system is a single bill/central pay arrangement. Although each individual Cardholder receives a monthly account statement, payment is centrally executed by Accounts Payable. The grand total of all charges with supporting detail by Cardholder account is paid to American Express 14 days following the close of the billing cycle.
• Accounts Payable will retain statements for seven years.

5. Roles and Responsibilities of the Cardholders

• Cardholders warrant and agree that the Purchasing Card shall be used only for related business purposes within the Cardholder's authorized level and for approved budgeted expenditures.
• The Cardholder is responsible for all purchases made with the card.
• The Cardholder is responsible for ensuring proper credit appears on the Cardholder's statement for the return of merchandise, and initiating and handling any and all disputes with suppliers.
• The Cardholder will be responsible for maintaining receipts and reconciling those receipts to the monthly statement, as well as maintaining a transaction log.   Records should be kept for 7 years at the Cardholder's location.
• The Cardholder is responsible for notifying the supplier that Barnard College is tax exempt.  

6.    Lost, Stolen or Cancelled Cards

Lost or Stolen Cards:

• The Cardholder is to report the loss/theft of their card (or account number) immediately to American Express Customer Service at 1-800-492-4920.
• After American Express has been contacted, the Cardholder must then advise the Purchasing Department.   In addition, the Cardholder must provide and sign a brief narrative on circumstances to the Purchasing Department.
• Upon notification to American Express of a lost or stolen card, further use of the card will be blocked. Prompt action in these circumstances can reduce the College's liability for fraudulent charges.
• American Express will replace the card within 2 business days.

How to Cancel a Card :

• In the event that the Cardholder's employment is terminated, the department must initiate cancellation of the Cardholder account. Purchasing Card accounts cannot be reassigned from one employee to another.
• The Purchasing Department should be contacted immediately and the P-Card should be cut in half and returned to the Purchasing Department.                  

7)   Key Contacts

• American Express CPC Customer Service: 800-492-4920
• Barnard College Purchasing Department: 212-854-5204
• Barnard College Budget Director: 212-854-6032