WHAT CAN THE CARD BE USED FOR?
Procedure 9-104
Issued By: Campus Purchasing Departments
Issued Date: 04/15/97
DEFINITION:
A personal purchase is any purchase that is not for use and ownership by the institution regardless of the intent to reimburse.
VIOLATION:
It is a cardholder violation to make ANY personal purchase or settle any debt with the Purchasing Card or any other purchasing method. It is against the law to use government funds, state or federal, to purchase items for personal use. Even though the cardholder may repay the institution, or may intend to repay the institution for the amount of the purchase, it may be considered a fraudulent act.
CONSEQUENCE:
The institution must be reimbursed immediately for the amount of the personal purchase. The Card will be cancelled. A letter noting the revocation and a description of the violation will be written per the guidelines above. Any violations of this policy may be investigated and could result in termination and/or criminal prosecution. In the event of willful or negligent default on these obligations, the institution shall take any recovery action deemed appropriate that is permitted by law.
DEFINITION:
Allowing an unauthorized person to make a purchase on a card not designated for that person is a cardholder violation. If a cardholder continues to use a card after the cardholder has terminated/separated from the institution is a cardholder violation. Continued use of a card after an authorized person has requested the card's surrender is a cardholder violation. The cardholder is the only authorized individual to use his/her card.
VIOLATION:
Allowing use of the card by someone other than the authorized cardholder is a cardholder violation. Refusal to surrender the card upon termination/separation or request is a cardholder violation.
CONSEQUENCE:
If the cardholder allows someone else to use the card, a warning letter will be sent immediately as outlined above. Any future misuse violations will result in the immediate cancellation of the card. If the cardholder is no longer employed at the institution, if not already cancelled, the card will be immediately cancelled and any charges made subsequent to the termination/separation will be referred for collection.
DEFINITION:
Cash, cash in addition to a purchase, cash in lieu of a credit to the cardholder's account, traveler's checks, money orders, gambling, ATM transactions, etc.
VIOLATION:
A cash or cash type transaction made using the Purchasing Card, unless specifically endorsed by the USNH Controller in advance, is a cardholder violation. The Purchasing Card is for goods only.
CONSEQUENCE:
Upon discovery, the cardholder will be subject to immediate repayment of any such transactions. In addition, a warning letter, as outlined above will be written. If the incident is determined to be fraudulent, the card will be immediately cancelled and the incident may be investigated further which could result in termination and/or criminal prosecution. In the event of willful or negligent default on these obligations, the institution shall take any recovery action deemed appropriate that is permitted by law.
SPLIT TRANSACTIONS OR "PYRAMIDING"
DEFINITION:
Split transactions or "pyramiding" are defined as single items costing more than the cardholder's single purchase limit which are split among multiple transactions to circumvent the cardholder's defined maximum purchase limit.
VIOLATION:
Any transaction which is split over more than one transaction and in total exceeds the cardholder's limit and/or the limit established by USNH, which ever is lower, is a cardholder violation.
CONSEQUENCE:
A warning letter will be written as outlined above. Any subsequent violations will require the card to be immediately cancelled. The cardholder will be required to obtain additional training before any card may be reinstated.
DEFINITION:
Appropriate purchases are listed in this chapter under Authorized Purchases and in the Cardholder's Guide in Procedure 9-104, What Can the Card be Used For? Any other uses of the Purchasing Card, except as specifically endorsed by the USNH Controller in advance, is considered inappropriate. In addition, when used for a Grant or Contract, the appropriateness of the purchase may be further restricted by the terms of the Grant or Contract.
VIOLATION:
Purchase of any inappropriate item or for any services, except as specifically endorsed by the USNH Controller in advance, is a cardholder violation.
CONSEQUENCE:
A warning as outlined above will be written immediately. Upon consultation with the Campus Card Administrator, additional training may be recommended. Continued misuse may result in the cancellation of the card.
LACK OF ORIGINAL DOCUMENTATION
DEFINITION:
Detailed descriptions of required documentation, reconciliations and record retention are contained in Procedure 9-110, Documentation and Retention. This includes recommended types of documentation and a listing of the requirements any documentation must meet.
VIOLATION:
Lack of original documentation for every purchase is a cardholder violation. Transactions where the merchant does not provide original documentation is not considered a violation if there is sufficient supporting evidence to meet the requirements for substantiation outlined in Procedure 9-110, Documentation and Retention. In unusual cases, substitute documentation may be used.
CONSEQUENCE:
Any violation of this policy may be investigated and could be subject to repayment and/or cancellation of the Purchasing Card. Human error and patterns of chronic abuse will also be considered. At a minimum, the cardholder will receive a warning as outlined above. The cardholder may also be required to attend additional training on the use of the Purchasing Card and their role and responsibilities. Chronic abuse may result in the cancellation of the card and will be investigated as personal purchases.