IS-1814 Procurement Card Program

Introduction

The Procurement Card Program at Central New Mexico Community College (CNM) is a purchasing tool designed to expedite purchasing and billing by reducing the processing costs and enabling approved cardholders to make in-store and online purchases. IS-1814 does not apply to purchasing transactions initiated by CNM Ingenuity or CNM Foundation. For more guidance, please contact your immediate supervisor if you are an employee of CNM Ingenuity or CNM Foundation. 

1. Program Description

1.1 The procurement card (P-Card) may be used for materials, supplies, services, and non-capital equipment with a limit of $3,000 per transaction for an individual cardholder. The $3,000 limit may be increased or decreased with approval from the departmental budget authority and the Purchasing Office. There are no limits on the number of daily or monthly transactions unless a departmental budget authority has set such limits for an individual cardholder. An attempt to use the procurement card for purchases in excess of the set card limits will result in the purchases being rejected by the bank and the vendor. The P-Card cannot be used for any of prohibited categories of goods and services listed in sections seventeen (17) and eighteen (18) of this procedure without prior approval from the Chief Procurement Officer.  Additionally, the P-Card cannot be used at any of the vendors that are categorized under the blocked MCC numbers shown in the Merchant Category Codes appendix of this procedure. The list of MCC numbers will be reviewed each July during even-numbered years. 

1.1.1 The CNM Purchasing Office must pre-approve any single transaction in excess of $3,000. 

1.1.2 The CNM Purchasing Office must pre-approve any transaction for tangible personal property including equipment in excess of $5,000 per item. 

1.1.3 Purchase of computers/laptops or tablets and software, licensing, or cloud-based subscriptions regardless of the cost must be preapproved by ITS prior to using the P-Card. The ITS email approval must be included with the receipt to document the expense. Items that require an inventory tag must be delivered to Shipping and Receiving to ensure items are appropriately accounted for. 

1.1.4 Any first-time subscription or membership must get Vice President of Finance & Operations approval and attach the approval to the purchase documentation. 

1.1.5 Conference registrations/trainings that involve travel (in-state or out-of-state) must submit a Spend Authorization in Workday.  

1.1.6 After making a purchase, an Expense Report must be submitted in Workday, including the itemized receipt and supporting documentation to record the expense. 

1.1.7 Any use of the CNM logo requires preapproval by MCO prior to using the P-Card. The MCO approval form or email approval must be included with the receipt to document the expense. 

1.1.8 For Federal Grants expenditures using a P-Card, it is necessary to provide three quotes for amounts exceeding $20,000. 

1.2 All purchases completed using the CNM Procurement Card are subject to the New Mexico Procurement Code. 

1.3 Travel services are to be obtained in accordance with the CNM Travel Policy. 

1.4 P-Card purchases must be made in accordance with the following procedures and required trainings, unless an exception has been granted in writing, by the Purchasing Office.

2. Procurement Card (P-Card) Terms

2.1  Allowed purchase: An acceptable transaction that utilizes the P-Card in accordance with this section. 

2.2 Cardholder: CNM employee that has submitted an application and has been granted the right of purchasing for their department. This person is responsible for any activity on a P-Card issued in their name. A cardholder can delegate responsibilities of reconciliation to another user but remains responsible for designee actions. 

2.3 Construction materials/services: materials or services used in building, altering, repairing, installing, demolishing or similar work on buildings, facilities, structures, or similar dwellings. 

2.4 Cost Center Manager: CNM employee, at appropriate level, who reviews purchases as allowable and appropriate. 

2.5 Backup Cost Center Manager: CNM employee, at appropriate level, who serves as a delegate to the primary Cost Center Manager. 

2.6 Delinquency Notice: Notice received by a cardholder or Cost Center Manager regarding missed approval deadlines or reconciliation in the P-Card system. 

2.7 Equipment: Tangible personal property which operates independently of other units, costs $5,000 or more, and is included in the College's inventory. 

2.8 Fraud: Any unauthorized activity or transaction performed on a P-Card. 

2.9 Issuing Bank: Bank of America available 24/7/365 at 1 (888) 449-2273. 

2.10 Limited services: Services that can be purchased on P-Card that do not require a formal contract and are completed within the current fiscal year. 

2.11 P-Card holder: CNM employee approved by their department. 

2.12 P-Card System: Bank of America Works system 

2.13 Itemized Receipt Attachment: a scanned itemized receipt, uploaded into Workday  

2.14 Expense Reporter: CNM employee who submits an Expense Report in Workday for P-Card transaction, as a designee of the cardholder. 

2.15 Restricted purchase: Items that can be purchased with CNM funds, and require approval by the Chief Procurement Officer (CPO) prior to using P-Card for the purchase. 

3. Card Allocations

3.1 Each department can have more than one cardholder. 

3.2 If an employee moves to a new position, the card should be terminated. A new card will be issued to the new hire upon completion and approval of an application.  

4. Purchasing Reconciliation System

4.1 The procurement card holder will receive a notification in Workday when any transactions are ready to be expensed.  

4.2 Cardholders have seven (7) business days from the date of the Workday notification to create an Expense Report in Workday.  If the Expense Report is not processed within the allotted timeframe, the transaction will be forwarded to the designated Cost Center Manager and the cardholder will receive a delinquency notice. 

4.3 Cardholders will be required to upload their itemized receipts and other backup to the issuing bank’s online system.  Documents must be retained by the cardholder until the fiscal year’s audit has been completed. 

5. Cardholder Eligibility and Applications

5.1 Application for a procurement card is made by completing a Cardholder Application Form. 

5.2 A CNM employee, who meets the Procurement Card (P-Card) eligibility requirements may obtain a Procurement Card (P-Card) to purchase goods and limited services. Purchases utilizing the P-Card will follow policies and procedures as established and maintained by the Purchasing Office. P-Card purchases are subject to applicable CNM policies and procedures related to disbursements. 

5.3 Each application must include approvals from the Cost Center Manager and Supervisor. It is possible the Cost Center Manager and Supervisor roles may be filled by the same person  

5.4 Applicants that are approved must attend a training session and complete a cardholder P-Card Agreement Form before a procurement card is issued. 

6. Purchases

6.1 Each card is given an approved monthly spending limit that cannot be exceeded without pre-approval from the Purchasing Office. If a cardholder attempts to purchase an item and the monthly limit is exceeded, the purchase is declined. 

6.2 All purchases for tangible goods made with the procurement card are tax exempt. If the vendor does not have a tax certificate for CNM on file, inform the vendor that CNM's New Mexico CRS number is imprinted on each card. Any tax charged to the procurement card related to tangible goods is the responsibility of the cardholder. Tax is allowed on services. 

6.3 Itemized receipts are required for all P-Card transactions and must be maintained by the department cardholder.  

6.4 In the event that an itemized receipt cannot be obtained, a P-Card Missing Receipt Form must be substituted for the missing receipt. 

6.5 If items will be shipped to Shipping and Receiving at 901 Buena Vista Dr. SE, a completed Procurement Card Order Approval and Receiving Form must be sent via e-mail to the Shipping and Receiving Department at [email protected]. Failure to send the receiving form to Shipping and Receiving, when making a procurement card purchase, may result in the order being returned to the vendor. 

7. Returns

7.1 If an item purchased with the P-Card is returned to the vendor, the vendor must issue a credit to the P-Card. Under no circumstances should cash be accepted in lieu of a credit to the procurement card account.  

7.2 Cardholders are responsible for ensuring a credit is received and must submit an Expense Report for a credit issued 

8. Disputes / Credits / Fraud

8.1 It is the cardholder’s responsibility to contact the P-Card administrator immediately to report fraud or disputed transactions. 

8.2 Cardholders are responsible for ensuring a credit is received and must submit an Expense Report for a credit issued. 

9. Security and Liability

9.1 The P-Card can only be used by the assigned cardholder. 

9.2 Any misuses of the P-Card result in disciplinary action in accordance with policy at CNM up to and including termination. Reimbursement from cardholder for unapproved purchases may be required. 

9.3 The P-Card should be kept in a secure location so that it is protected from theft or misuse.  The account number must remain confidential to avoid misuse. 

9.4 Any incident of card misuse may result in cancellation of card privileges. 

9.5 Charges made on CNM P-Cards do not affect the personal credit of the cardholder. 

10. Lost, Misplaced, or Stolen Cards

10.1 P-Cards that are lost, misplaced, or stolen must be reported to Bank of America immediately at the 24-hour number, (888) 449-2273. 

10.2 CNM’s P-Card Administrators must be notified immediately that the card is no longer in the possession of the cardholder by emailing [email protected] in the event of a lost, misplaced, or stolen card. 

10.3 A replacement card is issued from Bank of America after notification is received. 

10.4 Failure to make timely notifications could result in the department being responsible for unauthorized transactions.  

11. Fiscal Responsibilities

11.1 If a transaction is determined to be unallowable, the CNM’s Business Office will set up an accounts receivable in the cardholder’s name. The cardholder will be notified by e-mail of the unallowable transaction and balance of the amount due. It is the cardholder’s responsibility to remit payment to CNM’s Cashiers Office for the unallowable charge. 

11.2 If a vendor applies tax to a purchase, the amount of the tax must be split from the remaining transactions. The cardholder is responsible for receiving a credit for the tax and ensuring it is applied to the correct cost center account. 

11.3 If a purchase needs to be applied to multiple cost center accounts, the transaction can be split in the Workday Expense Report by amount or percentage during the reconciliation period. 

12. Compliance

12.1 The issuance of a CNM Procurement Card (P-Card) is a privilege and requires adherence to policies and procedures. Any misuse of the P-Card may result in immediate suspension of P-Card privileges, if so deemed by the Purchasing Office and/or Vice President for Finance and Operations. 

12.2 Failure to utilize the P-Card correctly or to adhere to the electronic approval / reconciliation schedule may result in the following action: 

12.2.1 Delinquency Notice – Not reconciling or approving in a timely manner 

1. First Non-Compliance - Notification sent to Supervisor and Director/Dean
2. Second Non-Compliance - Notification sent to Supervisor, Director/Dean and VP
3. Third Non-Compliance - Suspension of privileges

12.2.2 Purchase of Unallowable Item 

1. First Non-Compliance - Notification sent to Supervisor and Director/Dean
2. Second Non-Compliance - Notification sent to Supervisor, Director/Dean and VP
3. Third Non-Compliance - Suspension of privileges

12.2.3 Failure to attach receipts to Expense Report 

1. First Non-Compliance - Notification sent to Supervisor and Director/Dean
2. Second Non-Compliance - Notification sent to Supervisor, Director/Dean and VP
3. Third Non-Compliance - Suspension of privileges

13. Departmental Audits

Random audits will be performed on P-Card-departmental records. Once an audit report is complete, the department will be provided with a copy of any audit recommendations and will be expected to reply with a management response and action plan. 

14. Employment Status Change

14.1 If any change in employment status occurs, such as termination, transfer, change in employee FTE, supervisors must contact the P-Card Administrator at [email protected]. P-Card Administrator will inactivate an employee’s assigned P-Card and delete the employee from the list of approved P-Card users to ensure no fraudulent use of the card after being notified of the employee’s status change.  

14.2 If a cardholder separates from the College prior to reconciling the last statement, the Cost Center Manager is responsible to ensure that any outstanding expense reports are reconciled. 

15. Cost Center Manager and Backup Cost Center Manager Responsibilities

15.1 A Procurement Card (P-Card) Cost Center Manager (approver)/Backup Cost Center Manager has responsibilities for reviewing and approving cardholder Expense Reports in Workday In addition to the previous policies the following apply to Cost Center Manager/Backup Cost Center Manager 

15.2 Deadline Transactions: If an Expense Report is forwarded to the Cost Center Manager for which a cardholder missed the deadline, it is the Cost Center Manager’s/Backup Cost Center Manager’s responsibility to enter a purpose, account code, and description into the P-Card system. Additionally, the Cost Center Manager/Backup Cost Center Manager should submit the itemized receipts and supporting documentation into Workday. 

15.3 P-Card Transaction Processing 

15.3.1 A Cost Center Manager/Backup Cost Center Manager has three (3) business days from the date of Workday notification to review and approve the Expense Report. 

15.3.2 A subordinate should not be officially assigned as the Cost Center Manager of the transactions of their direct supervisor. 

15.3.3 A Cost Center Manager/Backup Cost Center Manager should be an employee with sufficient knowledge of the type of business that the cardholder conducts, in order to add value to the approval process and ensure purchases are appropriate. 

15.3.4 An employee may not be the final departmental approver of their own P-Card transactions. 

16. Restricted P-Card Purchases

The procurement card may not be used for the following items and services unless the Purchasing Department has given written permission via email in advance of the purchase. The list should not be considered all-inclusive but merely a guide for purchases that are restricted. 

• Artwork 
• Capital Equipment (items with a per unit cost of $5,000 or greater) 
• Cell Phones including smart phones regardless of the cost 
• Deposits for facilities rentals 
• Food and catering (except for food purchased by Student Organizations, the Culinary Arts Department for instructional use, GAA or similar accounts, or where permitted in Contracts and Grants). 
• Gasoline 
• Holiday decorations 
• Internal Services 
• Maintenance contracts 
• Personal care products (i.e., tissue, lotions, antibiotic gel, dish soap etc.) needs preapproval for student use (i.e., advisement, financial aid etc.) 
• Public relations items 
• Building Rent/Rentals 
• Student events (unless purchased by Student Organizations) 
• Tables for events (such as job fairs) where information regarding CNM is handed out. 
• Tangible personal property (equipment) equal to or greater than $5,000 without prior approval 
• Tickets for athletic or entertainment events 
• Travel-related expenses (i.e., car rental, gas, meals, train fare, bus fare, internet connections) unless obtained in accordance with the CNM Travel Policy. 
• Vehicle repairs 

17. Prohibited P-Card Purchases

17.1 Some purchases may be allowed against a CNM fund but are not allowed to be purchased using a CNM Procurement Card (P-Card). P-Cards allow expenditure of funds prior to review and, are therefore, not appropriately used for all transactions. These purchases, if made with a P-Card, may require refund from the vendor or reimbursement by the card holder and tracked as a misuse or decline violation. 

17.2 Splitting of purchases or any other form of incremental purchasing is prohibited with the procurement card including purchases from the same vendor, within a relatively short period of time, using two or more charge transactions to avoid exceeding the $3,000 limit (artificially divided to qualify as small purchase). Artificially divided purchases/incremental purchasing with the card will result in cancellation of Cardholder privileges. 

17.3 Blanket Orders. A Blanket Order is an open/standing purchase order issued for the purpose of goods or services on an as needed basis, usually established for a one-year period or other set period of time. 

17.4 Lengthy back ordered items (i.e., long enough to require multiple payments).  Partial payments are not authorized. 

17.5 Items/services to be purchased using the General Activity Account (GAA). Designated P-Card use may be approved by the Chief Procurement Officer.  

17.6 Unallowable expenditures as listed in the Governing Board Guide & Policy Manual, Employee Handbook, or otherwise specifically prohibited by the administration. 

17.7 The card cannot be used for personal and/or unauthorized items or services.  It may only be used for items purchases for CNM business purposes. 

17.8 The following are examples of unallowable purchases on a P-Card. The list should not be considered all-inclusive but merely a guide for purchases that are not allowed. 

• Animals 
• Annual Fees on credit cards, Interest, or Finance Charges 
• Cash, cash advances or traveler's checks 
• Compensation for employee personal service / Honorariums 
• Donations 
• Fines, Late Fees, or Penalties 
• Fund Raising Costs 
• Gross receipts taxes on goods 
• Items for personal gain or use 
• Lobbying 
• Meals including business meals and luncheons 
• Multi-year service agreements or formal contracts 
• Occasion cards, flowers, and gifts (condolence, birthdays, going away parties) for personal or business occasion/events 
• Performers 
• Physical Plant Construction Projects 
• Prescription Drugs/Controlled Substances 
• Professional services/consultants for which there must be a contract signed or services from an attorney 
• Reimbursement for loss or damage to personal items 
• Tuition 

Forms

• Procurement Card Cardholder Application
• Order Approval and Receiving Form
• Missing Receipt Form

Support Materials

• IS-1808, Purchase Requisition
• Frequently Asked Questions
• Merchant Category Code List

Reference Materials

• Purchasing Department Website