Business Rules

Cardholder Responsibilities
PCard purchases should be made in accordance with the following procedures, unless an exception has been granted, in writing, by the Director of Procurement Services.

PCard Limits

  • $3,000 per transaction
  • $10,000 per month
  •  Purchases of equipment (exceeding $1,000 per item) are not allowed

Request for Monthly Credit Limit and Per Transaction Increases

Temporary increases may be approved by the PCard Administrator on a case by case basis. If a Department requires an increase, an email should be sent to pcard@nmsu.edu detailing the circumstances for the temporary increase.

Exceptions

Temporary exceptions may be approved by the PCard Administrator on a case by case basis. If a Department requires an exception, an email should be sent to pcard@nmsu.edu detailing the circumstances for the temporary exception request.

Taxes

  • NMSU is tax exempt on purchases of goods; however the University does pay tax on services and rentals. It is the Cardholder’s responsibility to notify the vendor of tax exempt status and obtain a refund if tax is incorrectly charged.

Disputes/Credits/Fraud

  •  It is the Cardholder’s responsibility to contact issuing bank immediately to report fraud or disputed transactions.
  •  The Cardholder should ensure credits received from the issuing bank are applied to the correct Index and account code

Lost/Stolen Cards

  • Cardholders must call the issuing bank immediately and notify Procurement Card Coordinator in the event of a lost, misplaced or stolen card.
  •  Failure to make timely notifications could result in the department being responsible for unauthorized transactions.

Returned Merchandise

  • Cardholders are responsible for ensuring a credit is received and applied to correct index and account code.

Maintenance and Retention of Procurement Card Records

  • Receipts are required for all PCard transactions and must be maintained by the department per cardholder. Cardholders shall follow RMR retention guidelines for PCard receipt imaging.

PCard Transaction Processing

  • Cardholders have 6 calendar days from the date of PCard system notification to reconcile a statement in the PCard system. If the statement is not processed within the allotted timeframe, the statement will be forwarded to the designated approver and the cardholder will receive a delinquency notice.

Receipt Attachment

  • Cardholders shall submit into PCard system a receipt imaging packet that includes issuing bank’s coversheet, cardholder statement and vendor receipts for every statement cycle with activity.

Employment Status Change

  • Upon termination of employment, change to temporary status or transfer to another department, the PCard must immediately be turned in to Accounts Payable.

Declining Transactions

  • Only decline transactions in the PCard system that are unallowable purchases
  • Enter a description of the reason for the decline for each declined transaction.

Approvers and Backup Approvers Responsibilities
A PCard Approver/Backup Approver has responsibilities for reviewing and approving cardholder statements in the PCard system. In addition to the previous procedures the following apply to Approvers/Backup Approvers.

Deadline Transactions

  • If a statement is forwarded to the Approver, for which a cardholder missed the deadline, it is the approver’s responsibility to enter a purpose, account, index, and description into the PCard system. Additionally the Approver/Backup Approver should submit the receipt imaging packet into the PCard system.

PCard Transaction Processing

  • An Approver has 7 calendar days from the date of PCard system notification to review and approve a statement.
  • A subordinate should not be officially assigned as the approver of the transactions of their direct supervisor.
  • An approver should be an individual with sufficient knowledge of the type of business that the cardholder conducts, in order to add value to the approval process and ensure purchases are appropriate.
  • An individual may not be the final departmental approver of his or her own PCard transaction.

Receipt Attachment

  • Approvers/Backup Approvers should ensure the receipt imaging packet submitted into the PCard system includes issuing bank’s coversheet, cardholder statement and vendor receipts and is legible and properly attached.

Fiscal Responsibilities

  •  If a transaction is declined as unallowable in the PCard system, an email must be sent to the PCard Administration by the decliner to notify of unallowable transaction and a receivable will be set up in the Cardholder’s name. The Cardholder will be notified of the unallowable transaction and balance of the amount due. It is the Cardholder’s responsibility to remit payment for the unallowable charge.
  •  If a vendor applies tax to a purchase, the amount of the tax must be split from the remaining transactions. The Cardholder is responsible for receiving a credit for the tax and ensuring it is applied to the correct index and account code.
  • If a purchase needs to be applied to multiple index numbers or account codes, the transaction can be split in the PCard system by amount or percentage during the reconciliation period.

Compliance
The issuance of a PCard is a privilege and requires adherence to all business procedures. Any gross misuse of the card may result in immediate suspension of card privileges, if so deemed by the Director of Procurement Services. Failure to utilize the card correctly or to adhere to the electronic approval/reconciliation schedule may result in the following action:

Delinquency Notice – Not approving in a timely manner

      • First Non-Compliance – Delinquency Memo sent to Supervisor, Department Head, Dean/VP
      • Second Non-Compliance- Delinquency Memo sent to Supervisor, Department Head, Dean/VP
      • Third Non-Compliance – Suspension of privileges

Purchase of Unallowable Item

      • First Non-Compliance –Memo sent to Supervisor, Department Head, Dean/VP
      • Second Non-Compliance- Memo sent to Supervisor, Department Head, Dean/VP
      • Third Non-Compliance – Suspension of privileges

Failure to attach receipts to statement

      • First Non-Compliance –Memo sent to Supervisor, Department Head, Dean/VP
      • Second Non-Compliance- Memo sent to Supervisor, Department Head, Dean/VP
      • Third Non-Compliance – Suspension of privileges

Compliance Reviews
Compliance reviews will be performed on PCard records. In the event of  non-compliance, management will be notified if an action plan is needed.

Additional information can be located in NMSU Business Procedures Manual