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UNIVERSITY OF HAWAIʻI SYSTEM

OVPA Fiscal Services Intranet > Procedure Library > Purchasing Cards (PCard) Internal Guidelines

Purchasing Cards (PCard) Internal Guidelines

This policy provides additional guidance to University of Hawaiʻi – West Oʻahu (UHWO) constituents regarding purchasing card (PCard) purchases.

RELATED POLICIES
RELATED PROCEDURES

I. Purpose

This policy provides additional guidance to University of Hawaiʻi – West Oʻahu (UHWO) constituents regarding purchasing card (PCard) purchases. In compliance with University of Hawaiʻi policy, the PCard is UHWO’s preferred method of purchase for small dollar goods and services less than $2,500, with the exception of purchases noted by the Office of Procurement and Real Property Management (OPRPM). See the exceptions.

II. Responsibilities

  1. Cardholder
    • Ensure that purchases are in accordance with all University policies and procedures. See Attachment A for PCard Purchasing Guidelines.
    • The PCard will be strictly used for University business only. Personal purchases are prohibited and the Cardholder will be personally liable for inappropriate charges.
    • Only the Cardholder has the authority to use his/her PCard and is accountable for all charges on his/her PCard account. Accordingly, Cardholders shall not authorize or allow anyone to use the Cardholder’s assigned PCard.
    • Ensure that all charges and appropriate credits appear in CentreSuite and KFS. Contact OPRPM immediately (with copy to Teri Yoshida-Freitas, teriy@hawaii.edu) if unfamiliar transactions appear, or if the amount differs from that shown on the receipt.
    • When utilizing extramural funds, the Cardholder is responsible for obtaining approval from the respective project Principal Investigator to ensure that the purchases meet the requirements and regulations of the extramural funding agency and is necessary (allocable) to the respective project.
    • Retain itemized receipts for every purchase. If an itemized receipt is unavailable, accompany the receipt with itemized supporting documentation.
    • Ensure purchases are not parceled.
    • Ensure purchases do not exceed budgeted funds.
    • Review, scan and upload all supporting documents (to the University’s Kuali Financial System (KFS) and approve the respective PCDO by the 20th of the month (or the first work day after the 20th, if the 20th falls on a weekend or holiday).
  2. Account Supervisor
    • The Account Supervisor is responsible for ensuring that the purchases are reasonable, support the program objectives and is allowable under the terms of the sponsored program account for which the purchase was made.
    • Review and approve the PCDO by the 5th of the subsequent month (or the first work day after the 5th, if the 5th falls on a weekend or holiday).
  3. Business Office / Fiscal Administrator
    • The Business Office / Fiscal Administrator is responsible to provide fiscal policy and internal control management of the UHWO PCard Program, thereby ensuring the validity of PCard transactions.
    • Monitor purchases and account activity for the proper use of the PCard.
    • Certify fund availability for the transactions.
    • Ensure proper accounting of charges.
    • Work with the Cardholder, Account Supervisor, and OPRPM when issues arise.

III. Procedures

  1. Approval deadlines
    The PCDO eDoc must be approved by the Cardholder by the 20th of the month (or the first work day after the 20th, if the 20th falls on a weekend or holiday) and approved by the Account Supervisor by the 5th of the subsequent month.
  2. Cardholder
    The cardholder will review the PCDO which will list all the PCard charges for that billing cycle. The following needs to be performed:
    • Notate PCDO number in the top right corner of the First Hawaiian Bank statement and the Statement of Account.
    • Redact all confidential information.
    • Age stamp each receipt and complete necessary information (i.e., goods/services received date, certification that goods/services received in satisfactory condition, etc.).
    • Item descriptions should be listed on the invoice. If a clear description of items purchased is not listed on the invoice, please annotate it on the invoice. The description of “Supplies” is too vague, it would be better to list the actual item purchased such as “Copy Paper and Manilla Folders.”
    • Include explanation if the invoice includes a name other than the Cardholder (e.g., “The Cardholder name is not included on the invoice, as she requested that her administrative assistant obtain an initial quote for the purchase. As the quote was acceptable, the Cardholder placed the order directly with the vendor.”)
    • If the item may be construed as something that could be for personal use, please state item and business related usage. 
    • Document goods/services received date (if applicable) by checking the respective box in the PCDO and indicating the received date. NOTE: If goods/services have not been received, you will be required to still approve the PCDO and include the received date in the notes and attachments section of the PCDO once good/services have been received. 
    • Reallocate account and object code as necessary.
    • Attach receipts and supports for each charge. Tape each receipt to a plain 8 ½” x 11” paper. Do not tape over the thermal paper information.
    • Receipts/supports need to be scanned as a separate attachment for each charge (e.g., if you have 5 charges, you need to have 5 attachments). In the note text field, type in transaction # to correspond to the transaction number in the “accounting lines” tab. 
    • Approve the PCDO.
    • All receipts and supporting documents (including specialized purchase authorization forms—see V. below), copy of the PCDO eDoc, and First Hawaiian Bank credit card statement (print from CentreSuite) need to be submitted to Karen Matsushima (karenmma@hawaii.edu) in the UHWO Cashier’s Office (C144) by the 20th of the month (or the first work day after the 20th, if the 20th falls on a weekend or holiday).
  3. Account Supervisor
    • The Account Supervisor will review and approve the PCDO eDoc for appropriateness to the program. 
    • The PCDO must be approved by the 5th of the subsequent month (or the first work day after the 5th, if the 5th falls on a weekend or holiday. 
    • The PCDO eDoc cannot be disapproved by the Account Supervisor. Exceptions should be notated in the “Notes and Attachments” tab of the PCDO.
  4. Business Office / Fiscal Administrator
    The Business Office will review and approve the PCDO for compliance, appropriate accounting and certify availability of funds. As soon as the Business Office approves the PCDO, it will be posted to respective accounts in KFS.

IV. Special Purchases Requiring Advance Authorization

  1. Extramural funds
    The Cardholder must obtain prior approval from the respective Principal Investigator for purchases charged to extramural funds (except for meals, refreshments and travel) using the “Purchasing Card Authorization – Extramural Funds” form.
    NOTE: The purpose of the above mentioned form is to provide assurance to the cardholder that the extramurally funded purchase has been authorized by the Principal Investigator and provides additional documentation justifying why the purchase is necessary (allocable) to the respective project.
  2. Meals and refreshments using extramural funds
    The Cardholder must obtain prior approval for meals and refreshments by completing OPRPM Form 56. NOTE: Please ensure that an appropriate explanation justifying the use of the specific extramural fund or charge to the respective grant is included on OPRPM Form 56.
  3. Meal, refreshments and protocol using special, revolving or endowment funds
    The Cardholder must obtain prior approval for meals and refreshments or protocol items by submitting OPRPM Form 136. NOTE: The purpose of OPRPM Form 136 is to document and justify the use of public funds for these types of purchases in the event of public scrutiny and/or audit. As provided in AP 8.265, section 12, paragraph b, Guidelines, meals and refreshments should not be purchased with University controlled funds using either the PCard or Purchase Order for internal University staff meetings, training sessions and similar activities.
  4. Travel
    Prior to incurring any travel related expenses (airfare, conference/registration fee, etc.) on a PCard, the traveler must complete a Travel Request/Advance using eTravel or the RCUH Financial Portal. Exceptions related to required approvals (i.e., Fiscal Administrator, Executive Approving Authority, etc.) will be granted on a case-by-case basis.
  5. Information technology
    The Cardholder must obtain approval from the UHWO Information Technology Department for technology related expenses (i.e., hardware, software, peripherals and systems specifically used for UHWO operations, programs and other related services). See the IT Procurement Policies for additional information.
    NOTE: For software purchases, approval by the Business Office is required to be obtained prior to purchase. Approval may be received via email and must be attached as support to the PCardholder’s PCDO.
  6. Equipment (powered and non-powered), chemical, biological, or radiological Items
    The Cardholder must obtain approval from Planning and Campus Operations for powered and non-powered equipment, chemical, biological, or radiological items to ensure that the items can be properly and safely accommodated, specifically concerning design/space requirements, utility needs, installation, maintenance, and safe handling. See the Environmental Health & Safety Office for additional information.
  7. University-owned indicia (name, seal, logos, etc. associated with the University) 
    Submit requests for use of University-owned indicia to the UHWO Communications Department (Leila Wai, lwai@hawaii.edu). The Communications Department will review and route requests to the University’s Licensing Administrator (Debbie Kutara, dkutara@hawaii.edu) for approval.

V. Non-Compliance of PCard Policies

  1. General
    Participation in the PCard Program is a revocable privilege. The Cardholder is responsible for adhering to all University policies and procedures as well as UHWO regulations and guidelines for purchases or reallocations.

    Taking into account the severity of the violation and of the Cardholder’s history of offenses, non-compliance will result either in a warning via email with copy to Supervisor, reimbursement to UHWO, temporary/permanent suspension of the use of the PCard, additional training, or any combination of the aforementioned actions. In general, UHWO will utilize a three-strike violation process. Three instances of non-compliance of PCard policies by a Cardholder may result in the revocation of their PCard.
  2. Serious violations
    If the Cardholder’s offense is deemed to be deliberate, fraudulent or illegal misuse, the Cardholder may be subject to immediate card cancellation and/or disciplinary action, up to and including, termination of employment, in accordance with applicable collective bargaining agreements and University procedures. In addition, the matter may be referred to the Office of the University General Counsel for appropriate civil action against the Cardholder to recover University funds expended as a result of the unauthorized and/or inappropriate use of the PCard.

    The Vice President for Administration, in consultation with the Vice President for Legal Affairs, will determine the appropriate course of action for the serious violations of PCard policies based on standards applicable to all University employees.

VI. Other

New Cardholders will be required to meet with a designated UHWO Business Office personnel to review and discuss UHWO PCard policies and procedures prior to issuance of their PCard.

Requests for new cardholder, changes to cardholder dollar limits and/or access (merchant category code unblocks)

Contact Sheri Ching (sheric@hawaii.edu).

The UHWO Business Office reserves the right to refuse requests for new Cardholders and changes to an existing Cardholder’s dollar limits and/or access rights.

New cardholders