PCard PlusPCard Plus

Revised Feb 2007

What is PCard Plus?What is PCard Plus? Business Meetings Expenses

Business Entertainment Expenses

Employee Recognition Expenses

Employee Farewell Expenses

Special Event Expenses

Service & Recognition Awards

Program DefinitionProgram Definition

PCard Plus allows expenses related to business PCard Plus allows expenses related to business meetings and business entertainment, including meetings and business entertainment, including special events, where the University of Arizona will special events, where the University of Arizona will benefit, where business is conducted and/or business benefit, where business is conducted and/or business objectives are pursued. In addition, the University objectives are pursued. In addition, the University supports employee recognition events / retiree supports employee recognition events / retiree farewells and/or awards; PCard Plus also allows these farewells and/or awards; PCard Plus also allows these expenses. Any related expense must first be expenses. Any related expense must first be allowable on the specified FRS account and object allowable on the specified FRS account and object code; State Accounts and Sponsored Project code; State Accounts and Sponsored Project Accounts may NOT be used in conjunction with this Accounts may NOT be used in conjunction with this program.program.

What are the Benefits of PCard Plus?What are the Benefits of PCard Plus?

Greater Flexibility in Planning and Paying for related Greater Flexibility in Planning and Paying for related expenses expenses

Reduction in PCard Restrictions & Exceptions to PolicyReduction in PCard Restrictions & Exceptions to Policy

Optional ProgramOptional Program

Departments may add additional Internal Controls Departments may add additional Internal Controls

Cardholder BasedCardholder Based

Added or Removed at any time Added or Removed at any time

What are the Controls for PCard Plus?What are the Controls for PCard Plus?

Mirrors the controls and requirements needed for purchasing Mirrors the controls and requirements needed for purchasing similar items via a Check Request, PPO or Purchase Ordersimilar items via a Check Request, PPO or Purchase Order

Additional application (request) process Additional application (request) process

Department Head, Liaison and Cardholder signature Department Head, Liaison and Cardholder signature requirementrequirement

Mandatory training requirements for cardholders and business Mandatory training requirements for cardholders and business offices to join the program offices to join the program

Reviewed by PACS Compliance, FSO Compliance, Internal Reviewed by PACS Compliance, FSO Compliance, Internal Audit and Departmental ReviewAudit and Departmental Review

Circumstances for Use:Circumstances for Use:

Food, including but not limited to grocery stores, Food, including but not limited to grocery stores, catering expenses & restaurants catering expenses & restaurants

Meeting room / event space Meeting room / event space

Related expenditures, including but not limited to Related expenditures, including but not limited to meeting supplies, paper products, decorations, AV or meeting supplies, paper products, decorations, AV or other related equipment rental & small dollar (less other related equipment rental & small dollar (less than $15.00) mementos than $15.00) mementos

Service awards (non-cash, non-taxable awards for Service awards (non-cash, non-taxable awards for years of service) or achievement awards (non-cash, years of service) or achievement awards (non-cash, non-taxable awards for exceptional achievements non-taxable awards for exceptional achievements with significant departmental impact)with significant departmental impact)

Unallowable ExpendituresUnallowable Expenditures

AlcoholAlcohol

Expenditures for neither employee social or Expenditures for neither employee social or recreational functions - where no business is recreational functions - where no business is conducted nor business objectives are present (for conducted nor business objectives are present (for example, memorial services, Christmas or other example, memorial services, Christmas or other holiday related parties, employee social functions)holiday related parties, employee social functions)

Tips to merchants (i.e. restaurants) exceeding 20% Tips to merchants (i.e. restaurants) exceeding 20%

Cash awards or gift certificates / gift cards to be used Cash awards or gift certificates / gift cards to be used as awardsas awards

Taxable awardsTaxable awards

PCard Plus Policies & ProceduresPCard Plus Policies & Procedures

Responsibilities; Complying with Purchasing Policy:Responsibilities; Complying with Purchasing Policy:

Comply with The University of Arizona Policy for Food & Comply with The University of Arizona Policy for Food & Catering Catering http://w3.arizona.edu/%7Epolicy/catering.shtmlhttp://w3.arizona.edu/%7Epolicy/catering.shtml

– Definition: Wherein food is delivered, served and removed Definition: Wherein food is delivered, served and removed – On campus and over $500, must use Student UnionOn campus and over $500, must use Student Union– On campus, catered and under $500, use designated On campus, catered and under $500, use designated

approved caterer listapproved caterer list– On campus, not catered and under $500, use vendor of On campus, not catered and under $500, use vendor of

choicechoice– Off campus, catered, any dollar amount, use designated Off campus, catered, any dollar amount, use designated

approved caterer listapproved caterer list– Off campus, not catered, any dollar amount, use vendor of Off campus, not catered, any dollar amount, use vendor of

choice (events at a restaurant do not fall under the Catering choice (events at a restaurant do not fall under the Catering Policy)Policy)

Catering & Food Services Policy Catering & Food Services Policy FlowchartFlowchart

PCard Plus Policies & ProceduresPCard Plus Policies & ProceduresResponsibilities; Complying with Purchasing Policy:Responsibilities; Complying with Purchasing Policy:

Refer any rental agreement or contract to The Refer any rental agreement or contract to The University of Arizona Contracting Office for review University of Arizona Contracting Office for review and signature and signature

Record the date, business purpose and attendees of a Record the date, business purpose and attendees of a meeting or entertainment/event with the PCard meeting or entertainment/event with the PCard documentation by completing a PCard Plus Use Form documentation by completing a PCard Plus Use Form (or equivalent document). Include sign up sheet (or equivalent document). Include sign up sheet and/or meeting agenda if applicableand/or meeting agenda if applicable

PCard Plus Policies & ProceduresPCard Plus Policies & ProceduresResponsibilities; Complying with Financial Services Policy:Responsibilities; Complying with Financial Services Policy:

Verify the appropriate accounts are used for expenditures; Verify the appropriate accounts are used for expenditures; see FRS Policy 9.10, Table 1, for the Allowable Expenditure see FRS Policy 9.10, Table 1, for the Allowable Expenditure Summary at: Summary at: http://www.fso.arizona.edu/fso/deptman/9/910reimb.html - tablehttp://www.fso.arizona.edu/fso/deptman/9/910reimb.html - table11

Verify the appropriate object codes are used for Verify the appropriate object codes are used for expenditures; for a complete list of object codes see: expenditures; for a complete list of object codes see: http://www.fso.arizona.edu/fso/deptman/oc_quickref.pdfhttp://www.fso.arizona.edu/fso/deptman/oc_quickref.pdf– For Business meeting expenses use OC 5170For Business meeting expenses use OC 5170– For Business entertainment use OC 5550For Business entertainment use OC 5550– For other events/service awards, consult with For other events/service awards, consult with

appropriate Fund Accountantappropriate Fund Accountant

PCard Plus Policies & ProceduresPCard Plus Policies & Procedures

Responsibilities; Complying with Financial Services Policy:Responsibilities; Complying with Financial Services Policy:

Comply with The University of Arizona Policy for Comply with The University of Arizona Policy for Employee Recognition, Employee Farewells, Business Employee Recognition, Employee Farewells, Business Meetings and Business Entertainment, as well as Service Meetings and Business Entertainment, as well as Service & Achievement Awards under FRS Policy 9.10 & Achievement Awards under FRS Policy 9.10 http://www.fso.arizona.edu/fso/deptman/9/910reimb.html#genhttp://www.fso.arizona.edu/fso/deptman/9/910reimb.html#generaleral

PCard Plus Policies & ProceduresPCard Plus Policies & Procedures

Responsibilities; Complying with Financial Services Policy:Responsibilities; Complying with Financial Services Policy:

Employee Recognition, Employee Farewell Events Employee Recognition, Employee Farewell Events

– The costs of each recognition event do not exceed a The costs of each recognition event do not exceed a "reasonableness" level (defined as no more than $15 "reasonableness" level (defined as no more than $15 per person per event to cover the cost of per person per event to cover the cost of refreshments or a modest meal, minimal refreshments or a modest meal, minimal decorations, mementos etc.)decorations, mementos etc.)

– The event is held preceding, during, or immediately The event is held preceding, during, or immediately following normal business hours following normal business hours

– The recognition events must be non-discriminatory The recognition events must be non-discriminatory and held for the benefit of all eligible departmental and held for the benefit of all eligible departmental employeesemployees

Responsibilities; Complying with Financial Responsibilities; Complying with Financial Services Policy:Services Policy:

Service & Achievement Awards Service & Achievement Awards Non-taxable awards only allowed on Non-taxable awards only allowed on

PCard- PCard- Any award of tangible personal property Any award of tangible personal property of $75 or less (such as a pen or plaque)of $75 or less (such as a pen or plaque)Taxable awards must be reported Taxable awards must be reported through Payroll through Payroll

PCard Plus Policies & ProceduresPCard Plus Policies & Procedures

Responsibilities; Complying with Financial Services Policy:Responsibilities; Complying with Financial Services Policy:

Retiree Farewell awards Retiree Farewell awards Must meet HR minimum qualifications (i.e. continuous Must meet HR minimum qualifications (i.e. continuous

employment of 10 year or more) employment of 10 year or more) Non-taxable awards only allowed on PCard Non-taxable awards only allowed on PCard

Traditional retirement awards of less than $400 are Traditional retirement awards of less than $400 are non-taxablenon-taxable

Taxable awards must be reported through Payroll Taxable awards must be reported through Payroll

PCard Plus Policies & ProceduresPCard Plus Policies & Procedures

PCard Plus Policies & ProceduresPCard Plus Policies & ProceduresResponsibilities; Complying with Financial Services Policy:Responsibilities; Complying with Financial Services Policy:

** Business Meetings Business Meetings The primary purpose is to conduct business or The primary purpose is to conduct business or disseminate information. Business meetings require disseminate information. Business meetings require advance planning, involve groups of people and have advance planning, involve groups of people and have considerable cost. Code Business Meeting expense to considerable cost. Code Business Meeting expense to object code object code 51705170. .

** Business Entertainment Business Entertainment The primary purpose of Business Entertainment The primary purpose of Business Entertainment

is to further business relations. Business is to further business relations. Business Entertainment is smaller in scale, includes a small Entertainment is smaller in scale, includes a small number of people and is fairly low cost. Code number of people and is fairly low cost. Code Business Entertainment to object code Business Entertainment to object code 55505550. .

PCard Plus Policies & ProceduresPCard Plus Policies & Procedures

Responsibilities; Complying with Records Retention Policy:Responsibilities; Complying with Records Retention Policy:

Maintain itemized original receipts and PCard Plus Use Maintain itemized original receipts and PCard Plus Use Form (or equivalent document) in conjunction with the Form (or equivalent document) in conjunction with the Records Retention Policy Records Retention Policy

Comply with FSO procedures for centralization of PCard Comply with FSO procedures for centralization of PCard documentationdocumentation

PCard Plus USE FORMPCard Plus USE FORM

What am I doing?

Why am I doing it?

Whom am I doing it with?

How am I paying for it?

Am I within University Policy?

The Use Form guides cardholders to justify these types of meeting / event purchases:

PCard Plus Training & CompliancePCard Plus Training & Compliance

PCard Plus Policy Training is required for all cardholders, PCard Plus Policy Training is required for all cardholders, reconcilers and approvers prior to program approvalreconcilers and approvers prior to program approval

PCard Plus enhances the purchasing capabilities of the Classic PCard Plus enhances the purchasing capabilities of the Classic PCard program. However, all policies and procedures under the PCard program. However, all policies and procedures under the Classic PCard Program apply to PCard Plus unless specifically Classic PCard Program apply to PCard Plus unless specifically notednoted

Procurement and Contracting Services may suspend or Procurement and Contracting Services may suspend or terminate the program at any time if the cardholder or terminate the program at any time if the cardholder or department does not comply with circumstances for use or department does not comply with circumstances for use or mandatory responsibilities. In addition, purchases made outside mandatory responsibilities. In addition, purchases made outside the scope of the program may result in a violation to PCard or the scope of the program may result in a violation to PCard or FRS Policy, PCard suspension or Pcard cancellationFRS Policy, PCard suspension or Pcard cancellation

The Department Liaison or Department Head may suspend or The Department Liaison or Department Head may suspend or terminate the program at any time by cardholder or department terminate the program at any time by cardholder or department with an email to the PCard Office. with an email to the PCard Office.

Do I really need PCard Plus?Do I really need PCard Plus?

Analyze your Departmental spending trends in these areas. How Analyze your Departmental spending trends in these areas. How often do you make these types of purchases? Which employees often do you make these types of purchases? Which employees within your Department need this type of access?within your Department need this type of access?

Do ‘food’ purchases made in your Department fall under the Do ‘food’ purchases made in your Department fall under the Program Definition? Program Definition? – Food for research, animal feed, water for research, food for patients Food for research, animal feed, water for research, food for patients

(i.e. snacks for patients after blood draws), food for training (i.e. snacks for patients after blood draws), food for training (nutritional research or classroom use) is currently allowed on the (nutritional research or classroom use) is currently allowed on the PCard WITHOUT the PCard Plus Program or an Exception to PCard PCard WITHOUT the PCard Plus Program or an Exception to PCard Policy.Policy.

Does my Department have the support and controls in place to Does my Department have the support and controls in place to handle the additional reconciliation requirements? Will the handle the additional reconciliation requirements? Will the cardholders fulfill their obligation to complete the paperwork cardholders fulfill their obligation to complete the paperwork and maintain itemized invoices or receipts for these types of and maintain itemized invoices or receipts for these types of purchases?purchases?

How do I sign up for PCard Plus?How do I sign up for PCard Plus?Department Reconciler & Approver attend PCard Department Reconciler & Approver attend PCard Plus Policy training Plus Policy training

Apply for PCard if a new cardholdersApply for PCard if a new cardholders

Submit PCard Plus Request Form for each PCard to Submit PCard Plus Request Form for each PCard to be coded with PCard Plusbe coded with PCard Plus

Cardholder attends PCard Plus Policy training Cardholder attends PCard Plus Policy training

If Cardholder fulfills request criteria, set up with If Cardholder fulfills request criteria, set up with PCard Plus PCard Plus