7.1.6 Purchasing Credit Cards Procedure
Related Minnesota State Board Policy: 7.3 Financial Administration
Related Minnesota State Board Procedure: 7.3.3 Purchasing Cards
Purpose: The purchasing credit card program is a streamlined method to manage procurement resources and reduce the volume of individual vendor payments processed by the college in an efficient and cost-effective manner.
Part 1: Purchasing Card Program
The use of the Purchasing Card is an alternate means of payment and must not circumvent purchasing rules, regulations, policies, and procedures outlined in the Normandale Purchasing and Contracts Manual and Minnesota State Policy 5.14. The purchasing card allows a cardholder the authority and capability to purchase low dollar value business supplies and items directly. Purchases must be under $2,500 per transaction with a maximum of $10,000 monthly, per delegated authority.
Subpart A: The purchasing card may not be used for services when liability insurance coverage is required to protect the college from potential liability, construction services, professional-technical services or for high-risk projects.
Subpart B: Purchasing card purchases that include agreements/contracts/terms and conditions must be reviewed by the Purchasing Department before purchase.
Subpart C: A complete listing of other restrictions is outlined in the Purchasing Card Manual.
Part 2: Card Authority
Purchasing cards are assigned and issued to a cardholder and must be recommended and approved by their supervisor. The cardholder and their supervisor must understand and acknowledge the use restrictions and consequences contained in the Purchasing Card Policies and Procedures Manual by signing the cardholder agreement. Cardholders must have a delegation of authority to participate.
Subpart A: Purchasing cards are intended to be utilized exclusively by the Cardholder.
Subpart B: Documentation for purchasing must be completed in a timely manner and submitted with necessary receipts and submitted on the monthly transaction log for payment.
Subpart C: Cardholders must ensure necessary funds are encumbered to cover transactions and must monitor balances to ensure adequate funds are available for monthly obligations.
Subpart D: Failure to comply with all aspects of the purchasing card program will result in the suspension or revocation of the Cardholders account.
Policy History: Revised January 2023
Date of Adoption: Established prior to 2011
Date of Implementation: Established prior to 2011
Date and Subject of Revisions: January 2023: minor edits for clarity punctuation and spacing, additions: 1) Purchases that include agreement/contracts/terms and conditions, 2) consequences for failure to comply.
Next Review Date: 2026-2027