Corporate Card Procedures
Welcome to Southwestern University’s Corporate Card program. We hope you find the Corporate Card a convenient and useful tool in conducting business for the University.
These procedures will provide you with the basic information for using the Corporate Card, including an overview of the process using the cards, documentation required for properly conducting Purchasing and Travel transactions, reviewing and approving your card statement using the Internet and reallocating transactions to departments and object codes for general ledger accounting.
If you have questions, please contact the Corporate Card Administrator in the Business Office.
Corporate Card transactions are required to have supervisor approval similar to purchases made through the traditional AP system. See the Purchase Approval section below for more details.
The purpose for Southwestern University Corporate Card is to provide employees with an efficient system for purchasing goods and services under $1,000 and travel up to $2,000. The Corporate Card is a specialized MasterCard administered by JPMorgan Chase. Purchases made with the cards will be charged directly to the account specified in Smartdata, JP Morgan’s online reporting platform, and will be reported on the monthly general ledger.
The primary benefits of using the Corporate Card for departments are:
- Acceptance by any merchant who accepts MasterCard
- More timely purchase and receipt of goods
- Convenience of purchasing via the internet or telephone
- Increased information about purchasing transactions captured on Smartdata
- Reduced paperwork since no PO or check requisition is necessary
- Increased rebate amount earned by the University
Contact Southwestern University’s Corporate Card Administrator—Melissa Williamson in the Business Office at 863-1617 or at email@example.com , if you have any questions
Supplier - A company from which a Cardholder is purchasing goods under the provisions of these procedures.
Cardholder - Personnel who have been issued credit cards and are authorized to make University purchases in accordance with these procedures.
Corporate Card Administrator - The person in the Southwestern University Business Office responsible for program details (Melissa Williamson)
President’s Staff – The University’s chief administrative officers, consisting of the following personnel: Dean for Enrollment Services, Dean of the Faculty, Vice President for Finance & Administration, Vice President for Student Life, Vice President for University Relations, and Chief Marketing Officer &
Vice-President of Integrated Communications.
Purchasing Limits - The limitation of purchasing authority delegated to a Cardholder. Most cardholders at Southwestern have a maximum purchasing dollar limit of $1,000 per single purchase and $10,000 for total monthly purchases. These limits may be customized for each card based on the cardholder’s authority and needs. All purchases in excess of $500 must be approved in advance by a member of the President’s Staff. In addition, expenses should not exceed departmental budget limitations.
Smartdata – JPMorgan Chase’s online reporting platform providing online review and approval of cardholder transactions. The system will list all transactions for the current cycle (month), requiring review by the cardholder. Additionally, historic transactions are maintained on the system for a number of years.
Travel Limits - The limitation of travel authority delegated to certain Cardholders. Most travel expenses have a maximum purchasing dollar limit of $2,000 per single purchase and $10,000 for total monthly transactions. These limits may be customized for each card based on the cardholder’s authority and needs. All purchases in excess of $500 must be approved in advance by a member of the President’s Staff. In addition, expenses should not exceed departmental budget limitations.
NEW CORPORATE CARDHOLDERS
Print the Cardholder Enrollment Form . The completed and signed forms can be campus mailed to the Corporate Card Administrator in the Business Office.
LOST OR STOLEN CARDS
If you lose your Corporate Card immediately notify JPMorgan Chase at 1-800-890-0669. Also notify the Corporate Card Administrator as soon as possible. The lost/stolen card will be immediately deactivated.
OVERVIEW OF THE CORPORATE CARD PROCESS
The SU Corporate Card can only be used for University business. It is the expected method of payment when purchasing with a credit card. Reimbursements will no longer be made for purchases using personal credit cards without prior approval of the President’s Staff. Remember that transactions over the limit set on your card cannot be made with your Corporate Card; they will be automatically declined.
RECEIVING A CORPORATE CARD
Department Chairs will designate new Cardholders by completing a Corporate Card Enrollment Form .
The new Cardholder should read these procedures and will be required to sign the Corporate Card Employee Agreement (Page 2 of the Enrollment Form ) indicating that the Cardholder understands the procedures and their responsibilities.
The Corporate Cardholder Enrollment Form should be sent to the Corporate Card Administrator in the Business Office.
The Corporate Card Administrator will maintain records of Corporate Card requests, dollar limits, Cardholder transfers, and lost/stolen/destroyed card information. Approved requests will be processed and a Corporate Card issued to the cardholder. Upon receiving the Corporate Card, the cardholder will be contacted by the Corporate Card Administrator for training.
CARD EXPIRATION AND EMPLOYMENT TERMINATION
(including Leave of Absence and Retirement)
A Corporate Card typically expires after three years. The Cardholder will receive a new card before the expiration date of the old card. Upon receipt of the new card, the old card should be destroyed to ensure security of the card and account number.
Before leaving Southwestern University, including employees on a Leave of Absence and Retirement, the Cardholder shall turn in the Corporate Card to the Corporate Card Administrator in the Business Office. The Corporate Card Administrator will review the Cardholder’s Electronic Statement to ensure all transactions have been reviewed and approved. The Corporate Card Administrator will deactivate the card and destroy the card.
Employees who transfer between University departments may keep their Corporate Card if their new supervisor wants them to have one. The new supervisor or Cardholder shall e-mail the Corporate Card Administrator asking that the default department number be changed for that card.
It is the Cardholder’s responsibility to safeguard the Corporate Card and account number to the same degree that a Cardholder safeguards his/her personal credit information. The Cardholder must not allow anyone to use his/her credit card or account number. A violation of this trust will result in the Cardholder having his/her card privileges suspended.
If your card is lost or stolen, please immediately notify JPMorgan Chase at 1-800-890-0669. Also notify the Corporate Card Administrator. The lost/stolen card will be immediately deactivated.
A new Corporate Card will be promptly issued to the Cardholder. A card that is subsequently found by the Cardholder after being reported lost or stolen should be cut in half and forwarded to the Corporate Card Administrator, since cancellation of the card is an irreversible action.
USING YOUR CORPORATE CARD
AUTHORIZED CORPORATE CARD USE
The Corporate Card may be used for a majority of transactions arising in the normal course of business travel. The following limitations exist on the Corporate Card for travel:
- The total amount of a travel transaction shall not exceed the single purchase limit of $2,000.
- A purchase shall not be split into multiple transactions to stay within the single purchase limit.
- The Cardholder shall inform the supplier that the expenses are not subject to sales tax.
The Corporate Card may be used for a majority of transactions arising in the normal course of business. The following purchasing limitations exist on the use of the Corporate Card:
- The total amount of a purchasing transaction shall not exceed the single purchase limit of $1,000 unless the Cardholder has received advance approval from the VP of Finance & Administration for a temporary limit increase.
- A purchase should not be split into multiple transactions to stay within the single purchase limit.
- A purchase order should be used instead of a Corporate Card for all purchases over $1,000 unless the Cardholder has received advance approval from the VP of Finance & Administration to make a purchase greater than $1,000 using his/her Corporate Card.
- The Cardholder shall inform the supplier that the expenses are not subject to sales tax.
- The Corporate Card may be used to purchase computer hardware/software, but ITS approval is required prior to the purchase.
UNAUTHORIZED CORPORATE CARD USE
The Corporate Card SHALL NOT BE USED for the following:
- Personal purchases
- Non-University purchases
- Alcohol purchases
- Exception - alcohol purchased while entertaining donors or speakers, or when prior written approval is received from the cardholder’s VP is allowable.
- Contract Services (Due to legal concerns and the complexity of IRS regulations regarding independent contractors, these purchases should be processed using Purchase Requisitions).
- Large office equipment (i.e. copiers, fax machines, computers, etc…)
- All such purchases should be approved and coordinated by the ITS department.
A Cardholder making unauthorized purchases or carelessly using the Corporate Card may be personally liable for the total dollar amount of such unauthorized purchases plus any administrative fees charged by JPMorgan Chase in connection with the misuse. Inappropriate or fraudulent use of the Corporate Card by the Cardholder may also be subject to disciplinary action up to and including termination of employment.
All corporate card purchases must be approved by the cardholder’s supervisor, or his/her designee, at the end of each month. Additionally, purchases of $500 or more must be approved by the appropriate member of the President’s Staff prior to the purchase being made. Documentation of this approval should be submitted with the monthly statement and receipts to the Business Office. All of the required approvals should be obtained in a timely fashion so that statements can be turned into the Business Office by the deadline stated in the Monthly Deadlines section.
CORPORATE CARD BEST PRACTICES
The Corporate Card that the Cardholder receives has his/her name embossed on it and shall only be used by the Cardholder for University business. No other person is authorized to use your card. The Cardholder may initiate transactions on behalf of others in his/her department; however, the Cardholder is responsible for all use of his/her card.
It is the Cardholder’s responsibility to be aware of his/her own department rules and guidelines regarding purchases and make only appropriate purchases.
The cardholder should use a supplier that provides the best value to Southwestern University.
The following checklist summarizes the purchasing process the Cardholder may use when making a purchase:
– Non-Travel Purchases
- The value of items purchased must not exceed $1,000 on a single transaction, unless approval is obtained from the VP for Finance & Administration in advance
- Advance approval from ITS is required when purchasing technology-related goods or services
- Purchases funded with federal grant or loan funds must be procured in a manner that conforms with all applicable Federal laws, policies, and standards, including those under the Uniform Guidance (2 CFR Part 200).
- The PI/Program Director should complete the Federal Purchasing Checklist when procuring goods and services paid for with Federal grant funds.
- Solicit from an adequate number of suppliers to assure the best price, quality, and delivery. Select the vendor who provides the best value to Southwestern University
- Confirm that the supplier accepts MasterCard.
- Inform the supplier that the purchase is for Southwestern University and is exempt from sales tax
- Direct the supplier to include the following information on the shipping label and packing list:
- Request that the receipt be sent to the Cardholder. This will ensure that the documents necessary for record keeping are readily available to the Cardholder.
- Cardholder’s name and telephone number
- Complete delivery address
- The words “Corporate Card Purchase”
- The supplier’s order number
– Travel Purchases
- The travel expense must not exceed $2,000 on a single transaction
- Solicit from an adequate number of suppliers to assure the best price (i.e. airfares). Select the vendor who provides the best value to Southwestern University.
- Confirm that the supplier accepts MasterCard
CARDHOLDER RECORD KEEPING
Purchases with the Corporate Card can be made over the counter, via telephone or the Internet.
Appropriate documentation supporting the expense must be obtained by the Cardholder for all corporate card transactions and filed with your statement at the end of the month.
Complete the “no receipt” form for transactions without receipts. This form must be signed by you and your department chair or supervisor. Your explanation should include a description of the expense, date of purchase, supplier’s name and reason for the lack of supporting documentation.
File your receipts in your Monthly Receipts Envelope provided by the Business Office. Envelopes can be obtained from the Corporate Card Administrator.
If you have charges during the month you will receive an email from JPMorgan Chase notifying you that your monthly statement is available. If you haven’t already done so, log into Smartdata and use your receipts to verify the correctness of the transaction date, amount, vendor name, etc, including the correct account number for coding.
A default general ledger account is assigned to each Cardholder when (s)he is issued a Corporate Card based on the information in the Corporate Card Enrollment Form. To change this account number at any time, contact the Corporate Card Administrator.
Once you have reviewed all of your transactions for the month, print the monthly statement and sign and date it. Enclose it with the receipts in the Monthly Receipts Envelope. Complete the information requested on the front of the Monthly Receipts Envelope, and forward the envelope to the Business Office by the 10th of the month following the statement date.
It is important for you to print and sign the monthly statement in addition to having your supervisor and President’s Staff member, if applicable, approve your purchases as the statement is our permanent record of authorization for your transactions.
Do not enclose cash or checks in your Monthly Receipts Envelope. You may send checks to the Corporate Card Administrator via campus mail in a separate envelope. Cash should not be sent in campus mail. Please bring it to the Business Office in person.
The Business Office will collect, review and file your documentation each month. We will maintain record archives in accordance with Southwestern’s Record Retention policy. Therefore, it is not necessary for you to keep copies of your receipts.
Receipts for corporate card transactions are due to the Business Office on a monthly basis. These receipts should be sent to the Business Office as soon as possible after the end of the month, but no later than the 10th of the next month (i.e. October 10th for September statements).
On the 25th of the next month (i.e. October 25th for September statements), the Business Office will send a reminder email to all cardholders who have not turned in their statements and receipts. Cardholders who have not turned in the required documents by the 15th of the 2nd month following the statement date (i.e. November 15th for September statements) will receive a second and final email reminding them to turn in their documents and warning them of potential card deactivation. The Cardholder’s department chair or supervisor will be copied on each of the emails previously discussed. On the last day of the 2nd month following the statement date (i.e. November 30th for September statements), any cardholders who have not turned in their statement and receipts will have their cards deactivated.
We understand that there are certain circumstances, such as long term travel, which can make these procedures difficult to follow. We ask that you keep us informed of these situations so that we can work with you.
Deactivated cards are not cancelled and will be activated again once the required documents have been turned into the Business Office and reviewed and supervisor approval is received. Cardholders who continually miss the monthly deadlines may have their cards cancelled.
YEAR END CUTOFF AND ACCOUNTING
The monthly billing cycle for Corporate Card transactions runs from the first through the last day of the month. Charges posted to the Smartdata system during the billing cycle will be posted to that month’s general ledger activity at the beginning of the following month. For example, the billing cycle running from July 1 through July 31 will be posted to the general ledger on or about August 10.
It is important to note Southwestern’s fiscal year end cutoff policy for Corporate Card transactions. Transactions posted to Smartdata during the billing cycle ending on June 30 will be posted to the current fiscal year’s general ledger. Transactions posted to Smart Data starting July 1 will be deferred and recorded on August 10th as new fiscal year transactions.