632 Purchasing Card (P-Card) Program

Approved by President
Effective Date: April 19, 2022
Responsible Division: Business and Finance
Responsible Office:  Business and Finance
Responsible Officer:  Associate Vice President, Business and Finance

I. Purpose and Scope

This policy provides parameters in the areas of program administration, file management, proper purchasing card (P-Card) usage, with the intent to promote compliance with Middle Tennessee State University (MTSU or University) policies.

The scope of this policy applies to all University personnel who have been issued a P-Card, as well as those responsible for file management, monthly reconciliation, transaction approvals, and policy compliance.

II. Policy Statement

MTSU administers a P-Card program to provide employees with the means to procure small dollar goods and services with a defined University business purpose and use. Employee participation in this program is considered a privilege and may be revoked at any time for abuse, fraud, non-compliant purchases, or for program mismanagement. 

III. Program Administration

The P-Card program is administered by Procurement Logistic Services, Office of Business and Finance, and the P-Card Compliance Office to ensure segregation of duties. Procurement Logistic Services is responsible for issuing cards, initial and refresher trainings, cancelling cards, and the daily administration of the program.  The Office of Business and Finance orders cards for new cardholders and maintains card delegation and approver information. The P-Card Compliance Office reviews transactions for compliance and monitors cardholders for account status changes.  

The Office of Audit and Consulting Services reserves the right to conduct an official audit of the University’s P-Card program or departmental P-Card programs at any time as deemed appropriate.

When significant deficiencies are discovered during a review conducted by the P-Card Compliance Office, the file may be forwarded to the Office of Audit and Consulting Services for further review. If warranted, the Office of Audit and Consulting Services may decide to conduct an official audit of an individual P-Card and/or a department’s P-Card program.

IV. Purchasing Card Program

A.  Card Provider

P-Cards are corporate liability charge cards issued by the University’s contracted commercial card provider (the issuing bank). Charges incurred by cardholders on behalf of the University are paid directly to the issuing bank monthly.

The issuing bank provides the University with an online software application to help manage the program. All transactions made by cardholders are recorded in this application. In addition, purchases are coded to the correct Banner Finance index(es) and account(s), explained/justified, and then approved using this application. Purchases are extracted from this bank application and recorded to Banner Finance at the close of the billing cycle.

B.  P-Card Application Process

The University P-Card program is reserved for full-time and part-time benefited personnel. Regular part-time employees, temporary employees, adjunct faculty, contract employees, graduate assistants, and student workers are