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PCard Rules & Procedures

Rules & Procedures Applicability

Updated 8/20/2019

  • These procedures apply to all cardholders of the JP Morgan Chase purchasing card (PCard) product made available by University of Dayton.
  • In cases where a formal University policy and these procedures conflict, the Policy will prevail. These Policies will be mentioned as applicable throughout these procedures, but this document may not list every applicable Policy.
  • Special exemptions apply to cardholders who are not University employees or whose cards are designated as “special purpose.” These accounts will have an exception on file with the Program Administrator for the specific exceptions allowed that deviate from these procedures.
  • These procedures are subject to change with notice to cardholders.

Topics of Interest

  • Cardholder: The cardholder is the individual named on a PCard and the one who made the application for the PCard. For PCards issued under a department’s name, the cardholder is the one who made the application or primarily makes transactions using the PCard. The cardholder is solely responsible for compliance with these procedures. Other individuals (e.g., supervisors) may not compel a cardholder to act with disregard for these procedures, as the cardholder is ultimately responsible for PCard activity.
  • PCard: Purchasing Card and PCard can be used interchangeably. PCard may refer to the credit line extended by the bank or the actual plastic card sent to cardholders.
  • Program Administrator: The Program Administrator is the University employee who manages the entire program. This individual is responsible for issuing new PCards, providing the University with spend reporting, and aiding users in understanding procedures.
  • Manager Payable Services: The Manager Payable Services oversees the University’s accounts payable function as well as PCards, reimbursements, and certain other payment issues.
  • PaymentNet: PaymentNet is the name of the online portal in which cardholders can view transactions, supply a business purpose, and edit the accounting string (FOAPAL) that is appropriate for charges.

Every transaction made using a PCard must have a business purpose written in PaymentNet by the deadline announced by the Program Administrator.

The business purpose, which is defined as one that supports or advances the goals, objectives and mission of the University, adequately describes the expense as a necessary, reasonable, and appropriate business expense for the University. The business purpose is the main intent of the business transaction; it is the reason why the transaction occurred. It is a statement that includes who benefits from the purchase, what was purchased, and why the purchase was necessary. (Adopted from Brown University)

Business purposes may not simply be reiterations of the FOAPAL string or accounting elements (e.g., “book”). They should also not be the accounting code definition or reiteration of the vendor’s name (e.g., “Kroger groceries”).

The University is exempt from sales and use tax in the State of Ohio. Cardholders are responsible for informing suppliers of this exemption and may be personally responsible for sales tax charged if care was not given at the point of sale.

The University is also tax exempt in many states in which there is a physical presence of the University (mainly UD Research Institute locations). Every locale has specific rules governing sales tax exemption. Contact Payable Services for guidance at (937) 229-3646 if conducting business outside the State of Ohio.

Other types of taxes may be imposed on the University, such as lodging taxes, facilities fees in airports, etc. These types of taxes can be paid with a PCard as part of the transaction.

Ohio Sales Tax Blanket Exemption
  • In cases where these procedures conflict with the Awards, Gifts, and Prizes Policy of the University, the Policy will prevail.
  • The Awards, Gifts, and Prizes Policy describes taxation implications for recipients. Refer to the Policy for more information. Cardholders should also be familiar with IRS Publication 463 before purchasing gifts or other items that could potentially be considered taxable income to the recipient. The tax liability will ultimately rest with the cardholder if proper procedures are not followed.
  • Meals or catering services brought to campus must follow the procedures outlined in the America To Go section below.
  • Meals, gifts, gift cards, prizes, and awards should be given sparingly and with a clear and valid business purpose. Personal gifts must meet de minimis thresholds defined in the Policy.
Gifts, parties, and Meals for individuals
  • A division and a department within that division should not both host a holiday party that is paid for using university funds. Divisions and departments should pay attention to the number of University-funded celebrations or picnics for retirements, promotions and other life events, and seek ways for events to serve more than one purpose. For example, departments might celebrate life events in conjunction with quarterly, holiday, year-end or other gatherings, rather than separate events. 
  • Do not use University funds for Christmas presents for employees.
  • Business purposes for meals not involving outside guests must specify the reason the meal was necessary for the meeting to take place. First and last names and departments of University employees present must be listed.
  • Flowers are only appropriate for deaths in an employee’s immediate family or the celebration of work-related achievement (e.g., promotion, project completion, etc.).
America To Go
  • All catering and food orders being delivered or carried back to campus (including remote locations) should be placed via Runway purchase order with the University’s catering partner, America To Go (ATG). 
  • This procedure does not apply to personal food orders (i.e, orders not paid with University funds), consumption of food and beverage off campus, grocery purchases (excluding catering options provided by grocery stores), and food and beverage consumption while in traveling status. Cardholders are responsible for noting their business purpose with a food/catering exception remark in PaymentNet’s transaction notes.
  • The cardholder is responsible for writing in an explanation in PaymentNet that a food/catering was not consumed on campus.
  • Cardholders will be responsible to reimburse the University for catering/meals brought to campus outside of the ATG system.

If there is a conflict between these procedures and the Travel & Entertainment Policy, the Policy will prevail.

These procedures should be read in conjunction with the Policy to clarify procedures specific to cardholders who travel.

  • Travelers who are cardholders must use their Pcards as much as possible during time in travel status. Travel reimbursement requests from cardholders may be subject to extra inquiry.
  • If a credit limit increase is required, please notify Payable Services at least 5 working days in advance. 
  • Individual cardholders are responsible for notifying JP Morgan Chase of the cardholder's intent to travel abroad.
  • Cardholders are responsible for meeting end of month deadlines even while in travel status. If paper-based receipts cannot be mailed back to Payable Services, the digital receipt option must be utilized. For those traveling remotely, please notify Payable Services at least 30 calendar days before the trip commencement to make alternate arrangements.

  • Cash advances are not normally available to cardholders, except in cases in which travel is planned to regions where Visa branded credit cards are not accepted for payment. 
  • Cash advances are also available to travelers who need to exchange US dollars for foreign currency either domestically before the trip or abroad during the trip.
  • Other reasons require detailed explanations and possibly approvals by other parties including Internal Audit.
  • The cardholder is responsible for contacting the Program Administrator at least 30 calendar days before the trip commences or need for cash arises. The cardholder must give a written explanation about the need to withdraw cash, an estimate of how the cash will be spent, a plan for logging expenditures as they occur, and a plan to store the cash safely while traveling.
  • The cardholder must keep a log of cash expenditures while traveling. Excess cash must be returned to the University within 60 calendar days of the conclusion of the trip, or the remainder may be considered taxable income. Receipts must be provided upon return or at the end of a month, whichever comes first.
  • The Program Administrator has the final authority on granting permission for cash advances.
  • Violation of the cash withdrawal during foreign travel procedures will result in account suspension or closure.

Items in this list are outright prohibited and may not be purchased with a Pcard. Any exceptions must be on file with the Program Administrator in advance of the purchase.

  • Animals
  • Cash Advances (except as noted in the Cash Advance section)
  • Cell phones / phone charges
  • Construction / Renovation
  • Items that require additional review for regulatory compliance
  • Items that are considered to be equipment
  • Furniture
  • Lottery tickets, gambling, or betting
  • Personal items, including memberships (such as Amazon Prime, Costco, etc.)
  • Prescription drugs and controlled substances
  • Radioactive Material
  • Sexually-oriented material or adult entertainment
  • Weapons and ammunition

Note: Cardholders may now opt into digital receipts which changes some aspects of the procedures below.  The digital receipts page has more information. Cardholders who opt to use paper receipts should still follow the procedures below.

Receipts are required for each PCard transaction and must include the supplier name, address, date of transaction, itemized description of the purchase and signature (when appropriate). Acceptable original receipts include:

  • Invoices
  • Packing slips
  • Cash register receipts
  • Internet order forms

Receipts are not required for any purchase less than $20. The Program Administrator reserves the right to require receipts for all purchases from any particular cardholder.

Cardholders are responsible for generating and printing a PaymentNet report called “Statement of Account Landscape” and compiling the necessary receipts for transactions appearing on the report.

The Statement of Account report must cover transactions posted throughout an entire month.

The Statement of Account must be signed by the cardholder and his/her manager. Persons other than a cardholder’s manager may not sign this space unless they have been delegated permission.

An entire packet containing the Statement of Account and corresponding receipts may be mailed to Procurement & Payable Services through interoffice mail or personally delivered. The deadline for delivery is the 10th calendar day of the following month. If the 10th calendar day of the following month falls on a Saturday, Sunday, or University holiday, the deadline is the first business day after the 10th calendar day of the following month. This applies regardless of the cardholder's travel status and/or if the cardholder is not based on campus.

Procurement & Payable Services will not return materials to the cardholder or department.

Failure to comply with receipt requirements, manager approvals, or report submissions may result in account suspension or closure.

Cardholders, managers, transactions approvers, and other PaymentNet users are prohibited from allowing others to log in on their behalf to approve or reconcile transactions. Users who want to allow another employee to reconcile or otherwise view transactions must contact the Program Administrator.

Payable Services staff verifies monthly that a receipt or invoice exists for every transaction and converts paper records to digital records. The University contracts with a third party, Card Integrity, to review transaction in detail. Card Integrity provides monthly reports to Payable Services and University leadership outlining possible inappropriate spend, failure to follow procedures, and other items requiring extra attention.

Based on results from Card Integrity, cardholders may be contacted by the Program Administrator or Payable Services staff members for additional explanation related to any transaction. Cardholders should reply within 3 working days or a reasonable amount of time if out of office at the time of contact. 

Steps Taken in Possible Infractions of PCard Rules & Procedures

  1. If the Program Administrator’s review of a transaction indicates a violation of Pcard procedures, the Program Administrator is to hand over documentation and communication with the cardholder to the Manager Payable Services. The Manager will review the information and may request additional explanation from the cardholder.
  2. If the Manager determines that the transaction is appropriate as performed, no further communication will happen between Payable Services and the cardholder.
  3. If the Manager determines that the transaction is inappropriate due to a disregard of PCard procedures, the Manager may require that the cardholder reimburse the University for the expense.
  4. Such collections procedures will apply in cases including, but not limited to personal purchases, insufficient business purposes, sales tax charges, failure to use a preferred vendor, or failure to produce an itemized receipt.
  5. Accounts will be suspended or closed in cases of sustained abuse of PCard procedures or when collecting is not practical to enforce.

In some cases, the purchase may follow required procedures but indicate a disregard for exercising stewardship over University funds. In these cases, the Manager Payable Services will send information to a Procurement buyer to discuss better alternatives with the cardholder.

If the Manager Payable Services determines that a transaction is inappropriate for any reason, he/she may send a notice to a cardholder requiring repayment for the full amount of the transaction (or the portion of the transaction that is in violation of a rule or procedure).

The cardholder is required to pay the amount of the transaction back to the University within 5 working days. The actual date will be given in correspondence with the cardholder.

Payments can be made in accordance with procedures set by the Office of Student Accounts (OSA). Cardholders should contact OSA to make arrangements within the timeframe allotted.

Cardholders may appeal the Manager Payable Services’ decision by contacting the Executive Director Procurement & Payable Services within the time period allotted to repay the University. The Executive Director will consult with his/her counterpart in the cardholder’s unit to come to a resolution. If a resolution is not met, the final determination will be made between the Provost and Executive VP for Finance and Administrative Services.

Accounts may be suspended indefinitely or for a set period of time based on the nature of an infraction. Failure to communicate within a reasonable time frame when contacted by the Program Administrator will most likely result in account suspension until the cardholder responds to inquiries.

Account closure is a serious matter. Accounts with frequent violations or an egregious violation may be closed permanently.

In some cases, the cardholder will be referred to other offices as a result of an account suspension or closure:

  • Detection of fraud, impropriety, or continual abuse of PCard procedures will be sent to Internal Audit for review.
  • Account suspensions or closures of an employee who is required to hold a card for his/her job will be sent to Human Resources/Employee Relations.


Procurement & Payable Services

Daniel J. Curran Place
300 College Park
Dayton, Ohio 45469 - 7022