3215 PR.01 Yale Purchasing Card Procedure

Revision Date: 
June 25, 2019

Contents

1.     Yale Purchasing Card Overview

2.     Obtaining an Individual or Department PCard

3.     Standard PCard Limits

4.     PCard Use and Compliance

5.     Permitted Commodities

6.     Prohibited Commodities

7.     Making Changes to or Cancelling a PCard

8.     Suspensions and Cancellations for Non-Compliance

9.     Enrolling in Fraud Alert Program

10.    Reporting a Lost or Stolen PCard

This procedure supports Policy 3215 Yale Purchasing Card.  It provides detailed information on Yale’s Purchasing Card (“PCard”) program, including the application process, expectations for proper use, management of existing PCards, and disciplinary processes for misuse.

PCard Application

All prospective PCard cardholders, whether for individual or department PCards, must first apply and obtain approval.  To do so, applicants should complete Form 3215 FR.06 Purchasing Card Request Form.  Applicants should adhere to the following instructions to complete the form, depending on whether the application is for an Individual or Department PCard (as defined in Policy 3215 Yale Purchasing Card):

  • Individual PCards:  The employee to whom the PCard will be issued must provide the information in the “Required Cardholder Information” section.  The employee should then submit the form to the department lead administrator (or designee), who should complete the remainder of the form, including the “PCard Type and Limits” section, described in Section 3.
  • Department PCards:  The department lead administrator (or designee) should complete the form, including the “PCard Type and Limits” section, described in Section 3Please note: the Requestor and Approver cannot be the same person.  Therefore, if the lead administrator is the Requestor, their supervisor must approve the application.

Applicants should submit signed, completed forms to Yale Shared Services (“YSS”) at purchasing.card@yale.edu.

Security Verification

All PCard applicants must include the last four digits of their social security number, date of birth, mother’s maiden name, and their home address to permit card activation and future cardholder verification.  The issuing bank will not approve a PCard application without this information.

The information provided will remain confidential.  It will not be used to check the personal financial history of the applicant.

PCard Approval and Activation

Once YSS receives and reviews an application, the applicant will receive an email acknowledgment of approval and instructions to complete the online PCard Training and Form 3215 FR.01 Yale University Purchasing Card Cardholder Agreement through Yale’s Training Management System (“TMS”).

The applicant, after receiving the email, is required to complete the training, review the cardholder agreement, and electronically consent to the cardholder agreement.

Once YSS receives the applicant’s completed agreement from TMS, the physical PCard and instructions for activation of the PCard will be sent to the cardholder.

Yale PCards are available in several single transaction and monthly dollar limits, as detailed below.  The department lead administrator (or designee) must review and approve the limit requests on each application submitted.

For informational purposes, up-to-date departmental transaction limits can be obtained and viewed using the PCard Tableau Report in Workday.

The below tables detail the standard levels of single transaction and monthly dollar limits for both individual and department PCards.  Requests beyond these limits require approval from the Controller’s Office, in consultation with the Chief Procurement Officer.

Standard Individual PCard Limits

Travel-Related Expenses

Level I

Level II

Level III

Single Purchase Limit

$500

$2,000

$5,000

Monthly Limit

$5,000

$10,000

$25,000

Supplies

Level I

Level II

Single Purchase Limit

$500

$2,000

Monthly Limit

$5,000

$10,000

Standard Department PCard Limits

Travel-Related Expenses

Level I

Level II

Single Purchase Limit

$500

$1,000

Monthly Limit

$5,000

$10,000

Supplies

Level I

Level II

Single Purchase Limit

$500

$1,000

Monthly Limit

$5,000

$10,000

PCard Limit Exceptions

Under appropriate circumstances, with proper business reasons, exceptions to the standard PCard limits may be justified.  In such instances, lead administrators (or designees) should complete and submit Form 3215 FR.10 Individual and Department PCard Exceptions.  Requests for temporary PCard limit exceptions (including those where the PCard limit is below the maximum threshold) should also be made using Form 3215 FR.10 Individual and Department PCard Exceptions.  

Yale PCard cardholders, as with all University purchases, are required to use the preferred purchasing method(s) and supplier(s), as defined by commodity, in the University Buying Guide.  When a PCard is the appropriate purchasing method, cardholders are required to adhere to the requirements in Policy 3215 Yale Purchasing Card, Section 3215.2 Use of the Yale Purchasing Card.

Expense Report Preparation

Yale PCard Cardholders (or their documented delegate(s) in Workday) are expected to prepare and submit expense reports for PCard transactions, with supporting documentation, within thirty (30) days from the date the expense is incurred.  Expense reports are prepared pursuant to Procedure 3215 PR.02 Yale Expense Management (PCard and Out-of-Pocket Expenses)

Lead administrators (or designees) may, and are encouraged to, implement shorter expense report time limits for their units.   

Department business offices should determine, at the time of application, for what types of purchases the PCard may be used (subject to the restrictions of University policy and subject to terms and conditions of sponsored awards, if applicable).  PCards may be subject to stricter purchasing limitations than the University generally allows.

In general, Yale PCards may be used for travel and entertainment expenses.  For all other purchases, cardholders are required to use the preferred purchasing method(s) and supplier(s), as defined by commodity, in the University Buying Guide.  In limited situations (e.g., unavailability through a preferred purchasing method), with valid business reasons, individuals are permitted to use the PCard to pay for miscellaneous small dollar business-related goods and services (<$2,000).

Examples of permitted travel and entertainment commodities include, but are not limited to:

  • airfare, train fare, and other modes of transportation to/from business meetings or events;
  • car rental charges;
  • lodging charges; and
  • business-related meals, including alcohol.  If a business-related meal is charged to a federally sponsored award, the cardholder must separate alcohol charges from other charges and use the unallowable expense category for the alcohol charges).

Note: PCards must not be used for travel expenses associated with employee relocation.  These expenses are a separate, prohibited commodity.  See Section 6 for further detail on these expenses.

Note: Purchases of certain services (e.g., catering services) carry additional requirements, such as insurance.  Before purchasing services with a PCard, always consult Insurance Required of Outside Parties, maintained by Enterprise Risk Management.

Examples of permitted miscellaneous small dollar business-related goods and services include, but are not limited to:

  • conference, seminar, and course fees;
  • photo supplies and materials;
  • professional memberships, dues, and license fees;
  • subscriptions, books, and journals; and
  • tools and building supplies.

PCards may be subject to stricter purchasing limitations than the University generally allows.

Examples of generally prohibited commodities include, but are not limited to:

  • cash advances, ATM cash, gift cards/certificates, and traveler’s checks.  This applies to both U.S. and foreign currency.  (To obtain cash advances, see Policy 3305 Expense Advances; to obtain gift cards/certificates, see Policy 3303 Gifts from University Funds or Procedure 3417 PR.01 Human Research Study Participant Remuneration, as appropriate.)
  • University contracted goods and services (e.g., furniture and fixtures, telecommunications), except as provided in the limited situations discussed in Section 5.  Cardholders are expected to use the purchasing methods detailed in the University Buying Guide;
  • gasoline (except for rental cars and University vehicles);
  • purchases from Internal Service Providers (“ISPs”) (University departments that provide services for other departments (e.g., Facilities));
  • personal purchases;
  • restricted items, as detailed in Policy 3220 Purchase of Restricted Items;
  • relocation expenses, as detailed in Policy 3510 Faculty & Staff Relocation Expenses.  For such expenses, cardholders should follow Procedure 3510 PR.01 Faculty & Staff Relocation Expense Payments & Reimbursements; and
  • social memberships.

Changes to a PCard

Active PCards may be changed, as necessary.  Any of the following changes are permitted:

  • cardholder name;
  • email address;
  • authorized commodity categories; and
  • single transaction or monthly purchase limits.

To request a change to an existing PCard, cardholders or lead administrators (or designee) should complete Form 3215 FR.06 Purchasing Card Request Form and select “Change” in the “Action” section.  Cardholders or lead administrators (or designee) should submit signed, completed forms to YSS at purchasing.card@yale.eduNote: Requests for temporary PCard limit exceptions (including those where the PCard limit is below the maximum threshold) should instead be made with Form 3215 FR.10 Individual and Department PCard Exceptions.

Cancelling a PCard

PCards may be cancelled at any time by either the cardholder or lead administrator (or designee).  A cardholder’s lead administrator (or designee) must request the cancellation of a PCard if:

  • the cardholder is transferring to a different department within the University;
  • the cardholder is leaving the University; or
  • the cardholder’s position no longer requires use of a purchasing card.

To request cancellation of a PCard, cardholders or lead administrators (or designee) complete Form 3215 FR.06 Purchasing Card Request Form and select “Cancel” in the “Action” section.  Cardholders or lead administrators (or designee) submit signed, completed forms to YSS at purchasing.card@yale.edu.  In addition, the cardholder must:

  • return the PCard to the department lead administrator (or designee).  If the lead administrator (or designee) is the cardholder, they must return the PCard to YSS;
  • submit remaining receipts to the lead administrator (or designee); and
  • complete an expense report for any outstanding, unprocessed transactions.

Improper use of the Yale PCard may lead to suspension or cancellation of PCard privileges or other disciplinary action, up to and including termination of employment.  The circumstances under which this may occur include, but are not limited to, the following:

  • the cardholder violates any of the requirements of Section 4;
  • the cardholder fails to process PCard transactions in expense reports within ninety (90) days;
  • the cardholder shares PCard account information with someone else;
  • the cardholder uses the PCard for personal expenses or for other charges outside of policy;
  • the cardholder consistently does not provide necessary receipts;
  • the cardholder uses the PCard for contract suppliers; or
  • the cardholder uses the PCard for prohibited commodities, without receiving prior approval.

PCard Suspension Process

Prior to suspending a PCard, the Procurement Department, in consultation with the Controller’s Office, will notify the cardholder in writing of the impending suspension.  The notification will typically take the form of email and will include the date of the impending suspension.

Notices will precede suspensions for unprocessed transactions older than ninety (90) days.    These notices are reminders to the cardholders.  Notifications also include other relevant individuals (e.g., delegates, operations managers, lead administrators, senior directors).

PCard Reactivation

Once a PCard is suspended, a lead administrator (or designee) may request reactivation once corrective action is completed.  To do so, the lead administrator (or designee) should complete and submit Form 3215 FR.03 Purchasing Card Application for Reactivation of Individual Card.

Yale strongly encourages cardholders to enroll in fraud protection.  All cardholders should enroll in the fraud alert program offered by the issuing bank (JP Morgan Chase).  To do so, follow the instructions provided on the Yale Purchasing Card: Fraud Alerts page (Note: this page requires CAS authentication).  Upon enrollment, cardholders will receive fraud alerts directly from the issuing bank.

Receiving Fraud Alerts

Upon receiving a fraud alert, cardholders are asked to validate a recent transaction.

  • If the transaction is valid, indicate its validity.  The account will be updated and available for continued use without disruption or need for card replacement.
  • If the transaction is invalid, indicate its invalidity.  The account will be temporarily unavailable, and the issuing bank will provide a replacement card.

Cardholders must contact the issuing bank (JP Morgan Chase) using the information below, or YSS, as soon as they are aware that their PCard has been lost or stolen. Once the PCard is reported lost or stolen, the account will be closed and a new PCard will be sent to YSS. Once YSS receives the new PCard, YSS will send the cardholder’s new PCard to the business office address on file.

If a PCard is denied for any reason during domestic or international business travel, and no other form of payment available, use the information below to request that the card be enabled to facilitate the trip home.

To report a lost, stolen, or declined card, the cardholder must promptly notify either:

  • The issuing bank (JPMorgan Chase) directly by calling 1-800-316-6056 (domestic) or 1-847-488-4441 (international); or 
  • YSS at purchasing.card@yale.edu.