PCard Policy

PCard

What is a PCard

The University’s Purchasing Card (PCard) is a desirable payment method for a large volume of purchases that are typically less than $500, such as office supplies, local business meals, and more. If you are someone makes regular low dollar purchases on behalf of the University, your manager may decide that a PCard would be beneficial. The PCard eliminates the use of your own personal funds to make purchases on behalf of the University.

Below is a summary of the PCard policies, procedures and best practices, however, a Quick Reference Card , can also be downloaded and printed for your convenience.

How To Obtain a PCard

Once you receive your manager’s approval, contact your local PCard Administrator for an application or see the Forms section of our web site.

Read the instructions prior to completing the form. The form is broken up into 3 parts. Once you have filled out the appropriate information and read/signed the cardholder agreement section (Part 1), your manager or supervisor must also provide his/her signature as well as complete Part 2 of the application. Forward the completed form along to your local PCard Administrator at 1230 Soldiers Field Road. Your PCard will be ready in approximately two weeks.

Before completing the form:

• Do you have management approval?
• Have you read and completed Part 1?
• Have you provided your proper 33 Digit default GL coding?
• Have you and your manager/supervisor signed the Cardholder Agreement section?
• Has your manager/supervisor filled out Part 2?

For more information on acquiring a Purchasing Card, please visit the University’s on-line PCard manual.

Restricted Commodities

Unlike the Corporate Card or “Out of Pocket” business purchases, there are various charges that cannot be made using the PCard. The following is a list of restricted commodities:

• Travel and Entertainment
  • Airfare
  • Lodging
  • Transportation
  • Restaurants outside the Boston/Cambridge are
• Gifts
  • Any gift >or = $75
  • Gift certificates
• Services of non-incorporated providers
• Personal purchases
• Phone and Internet Service

To view a complete list of the University’s restricted commodities, go to Harvard’s on-line PCard manual.

If you have additional questions, please contact your local PCard Administrator.

Settlement System

The University’s Purchasing Card (PCard) has an on-line settlement system to review and verify all PCard transactions. Upon submitting your PCard application, a reviewer is designated to verify all transactions. It is both the reviewer and cardholder’s responsibility to ensure the following:

• all purchases are in conduct with University business,
• they are legitimate expenses incurred by the cardholder,
• there is adequate proof of purchase
• the business purpose has been input in the system
• the appropriate GL coding has been selected and saved

PCard purchases are posted to the settlement system within one to three business days. Once the purchases post to the system, the reviewer has usually ten to fourteen business days to review individual transactions (i.e. provide business purpose and proper GL coding). Transactions that have been in the settlement system for two weeks are swept by Central Accounts Payable to the General Ledger (GL). Such transactions are swept to the GL every Thursday by 4PM.

If you are a reviewer for multiple cardholders, it is important for you to take the initiative and log onto the PCard settlement system in the beginning of each week. This will allow you sufficient time to contact, if needed, the individual cardholders to insure a receipt and business purpose is received by Thursday. All transactions, regardless of whether or not they have been reviewed, will automatically sweep to the GL using the default GL code given on the PCard application. Once the items are swept, GL corrections can only be made via journal entries.

Please be sure to visit the University’s PCard manual for more information regarding the settlement system and GL sweep dates.

Receipts & Documentation

All receipts must be attached to the Weekly Settlement Report and forwarded to:

• Ahmed Ahmed at 1230 Soldiers Field Road (for UIS), or
• Kate Arnold at 8 Story Street (for OAS)

The receipts are then matched with the on-line settlement systems and maintained in central filing for audit purposes. UIS/OAS policy requires that all original receipts be maintained, regardless of the dollar amount. Should the cardholder not produce the original receipt for any reason, they must complete the University MRA for purchases greater than $75 or the UIS Missing Receipt Form for expenses under $75. If receipts are not received within 30 days of when the transactions are swept, your Director will be notified. Repeated requests for receipts may result in your card privileges being revoked.

Management Transaction Review

On a weekly basis, each group director will receive a report detailing each transaction made over the last seven days by individual cardholder. It is the director’s responsibility to ensure that each transaction is appropriate and that the business purpose is accurate. All questionable transactions should be reported immediately to the local PCard Administrator for further review.

Other PCard Best Practices

Below is a list of additional best practices that should be followed at all times by PCard holders:

• Keep the card in a safe location at all times.
• Use the card for Harvard business purposes only (personal purchases are allowed on the PCard)
• Notify vendors of the University’s tax exemption status (Note: The Tax Identification Number [TIN] is on the face of the card. A copy of the Tax Exemption Certificate is on the University Web Site.)
• Review monthly statement from GE Capital and reconcile transactions
• Do not share your card with other employees
• Do not split an order to avoid the single-purchase or monthly card limits

Purchasing Card Administrators and Reviewers have the responsibility to suspend or terminate Purchasing Card privileges in instances of misuse. Improper use of the Purchasing Card may also result in disciplinary action, up to and including termination of employment.

PCard Termination Procedures

Employee Leaving Harvard

When a cardholder leaves Harvard University, the credit card account is automatically deactivated. Cardholders should return the PCard to the PCard Administrator at 1230 Soldiers Field Road.

Employee transferring to another Harvard Department

When an employee transfers to another Harvard Department, the existing PCard will be deactivated, and should be returned to the local administrator. If the employee is granted a PCard with his/her new department, the employee must go through the PCard process outlined by their new department to receive a new card.