This page contains information about recordkeeping for the ISU Procard Program. See also:



The Procurement Card (Procard) is a University credit card that delegates small-dollar purchasing power to individual employees. The Procard permits purchases to be made with a minimum of delay and a minimum of clerical labor, while also providing accountability. The Procard allows the cardholder to charge work-related expenses directly to the University. This policy describes the proper use of a University procurement card. The procedures established here also serve to protect the University from fraud and other misuse of its funds.


The Procurement Card billing cycle is a monthly period from the 16th of one month to the 15th of the next month.


Cardholders should always obtain an itemized vendor receipt for each transaction. If a cash register tape does not have descriptions, write them on the tape. If an itemized vendor receipt is missing, the cardholder will contact the vendor to obtain a vendor receipt. If the vendor cannot or will not issue a receipt, the cardholder will fill out a missing receipt report and get all appropriate signatures. If the cardholder has a problem obtaining all original itemized receipts, his privilege of having a Procard will be reviewed for further action.

  1. Itemized Vendor Receipt: Is defined as an original invoice, original cash register receipt, original sales slip, or original packing slip which contains an itemized list of goods purchased, with dollar amounts, and the name and location of the supplier. An employee of the supplier must sign handwritten receipts.

  2. Internet Purchases: At least one of the following types of documentation is required:

    1. Original itemized invoice or packing slip
    2. Printout of the online order confirmation
    3. Printout of the e-mail confirmation
    4. Printout of the completed online order form
  3. Conference Registration Fees: Registration fees are now accepted on the Procurement card, effective January 1, 2011. When registering an individual for an off campus conference, you can now put that expense on the Procard. Ninety-nine percent of all registration fees are below the $1000.00 credit limit. If the expense is greater than your credit limit, you will need to pay via check request or personal credit card. All University travel must be approved prior to payment of registration fees with the Procard.

    Procedures to follow when paying registration fees with your procurement card:

    1. When the expense posts to SDG2, change the account code to 70580.
    2. Enter the TA number in the “TA/Encumbrance #” field on SDG2. This field is located in the same grouping as the index and account codes.
    3. Within the expense description field on SDG2, enter the name of the traveler and purpose of the purchase.
    4. Attach a copy of the TA along with the itemized invoice of the registration fee to your Procard records.
  4. Webinars and Teleconferences: In most cases, there is a cost to attend a webinar or teleconference. The cost is usually referred to as a registration fee. This type of registration fee has been approved as a Procard purchase, but the expense must come out of account 70579. A change in account code to 70579 must be made on SDG2 once the expense has posted. The reason for the exception on webinars and teleconferences is that you are not leaving campus. If you have questions, please contact the Procard Auditor at x-3519 or Travel at x-3541.

  5. Sales Tax: Indiana State University is exempt from sales tax. Indiana state sales tax charges should not be accepted on Procard purchases by the cardholder. The University’s tax exemption number is on the face of the Procard. You, as the cardholder, need to be sure that the vendor does not charge you sales tax. We are NOT exempt from all types of taxes. We are only exempt from sales tax.

  6. Purpose of Purchase: We need the purpose of the purchase to determine the appropriateness of the purchase. You will need to enter the information for your transactions on SDG2 in the field “Expense Description” under the Financial tab and then Account Summary. This should not be a list of what was purchased or a person’s name, but rather why you are purchasing the items.

  7. Expense Report: This report is your credit card statement. This report contains transactions, purpose of purchases, and fields for cardholder and reviewers signatures. You can print your Expense Report from the SDG2 webpage.

  8. Reconciliation: It is the cardholder’s responsibility to reconcile all purchases with the expense report. Any discrepancies are the cardholder’s responsibility to correct by contacting the vendor within 30 days of the end of the billing cycle.

  9. Departmental Reviewer: The departmental reviewer should also reconcile the expense report before they sign off on it. The department reviewer should be the department head or someone he/she designates to be the reviewer of the cardholders. The departmental reviewer should be someone that is financially qualified to understand the reason for the purchase and knows whether the purchase is for the department’s benefit. The departmental reviewer will be responsible for seeing that the reconciliation of the Expense Report is correct.

  10. Approvals: The cardholder must sign and date the Expense Report. The departmental reviewer must sign and date the Expense Report. The signed report is ensuring all transactions are for a university purposes only.

  11. Turning Records into the Auditor: Records must be reconciled by the cardholder and reviewed by the departmental reviewer and then turned into the procurement card auditor on a monthly basis. These records include the Expense Report and the itemized vendor receipts. Records are expected to be in the possession of the procurement card auditor within 30 days of the end of the billing cycle date. It is recommended that these records be hand-delivered to the assigned drop-off area in the Office of the Controller. NOTE: These records become permanent records within the Office of the Controller. We recommend you have copies made before turning in these records.


All procurement card transactions will be audited on a monthly basis. The Internal Auditor and State Board of Accounts will select a number of cardholders to audit for appropriateness of transactions and adherence to recordkeeping procedures. Procurement Card auditing procedures are established to verify that the Procurement Card is being used appropriately by the cardholder and that the cardholder and the department are maintaining the records and not being charged sales tax. Procurement Card violations are described below:

The following non-compliant situations may result in cancellation of the cardholder’s card:

  1. Inadequate documentation to support purchases.
  2. Inappropriate purchases.
  3. Purchases split to get around the maximum transaction amount.
  4. Monthly statements that have not been reconciled and signed by the cardholder or departmental reviewer.
  5. Failure to reconcile before the 15th of the next month after the close of the billing cycle.

Cardholders may be subject to disciplinary action, including termination, for the following non-compliant situations:

  1. Use of the card for personal purchases
  2. Not reporting a lost or stolen card immediately
  3. Sharing the card
  4. Other excessive violations of Purchasing Card policies

For violation of the policy, you will be notified and given one week to correct the violation.

If not corrected by the deadline, you will be notified for the second time and given one week to correct the violation. Your supervisor will be copied on the second notification.

At the end of the second notification, if the violation has not been corrected, your procurement card limits will be reduced to zero. You will not be able to make purchases with your procurement card.

Once the violation has been corrected and approved by the procurement card auditor, your procurement card limits will be raised back to the defaulted limits, and the restriction will be lifted.



    1. The card is for business expenses only. It must not be used for personal purchases.
    2. The card is not transferable. It may be used by the cardholder only.
    3. Protect the card at all times to prevent unauthorized use, and do not share or authorize others to use the card.
    4. Immediately report a lost or stolen card to the bank and to the Procurement Card Administrator. The University is liable for all charges incurred on a lost or stolen card up to when it is reported. You should however, dispute all fraudulent charges.
    5. Notify the Procurement Card Administrator and Procurement Card Auditor immediately of transfer or termination.
    6. Itemized vendor receipts/packing slips must be obtained for all Procard transactions.
    7. In the case the cardholder did not receive a vendor receipt/packing slip; it is the cardholder’s responsibility to contact the vendor. If not able to obtain the vendor receipt, a missing receipt report will be given to the cardholder to be completed.
    8. When purchasing hazardous materials, the vendor will send a Material Safety Data Sheet (MSDS). This MSDS sheet must be included with the cardholder’s procurement card records. The auditor will forward the MSDS sheet to Environmental Safety.
    9. All transactions must be appropriate, and the purpose of the purchase must be described on the expense log report.
    10. Splitting – dividing a purchase into two or more transactions, in order to stay within your transaction limit – is not allowable.
    11. If the cardholder does not update his or her own transactions on SDG2, he or she must notify the individual in charge of updating SDG2. The user with the information must update the transactions on a weekly basis.
    12. Cardholders may not receive cash advances of any form using the Procard.
    13. Cardholders are responsible for resolving discrepancies and ensuring credits are received.
    14. Cardholders may not receive cash back or in-store credits for any refunds or exchanges. Such amounts must be credited to the Procard account. If a supplier mistakenly issues a refund check, it must be submitted to the Procard auditor within five days of receipt by the cardholder.
    15. Cardholders should not pay Indiana sales tax. The cardholder must tell suppliers the University is exempt from Indiana sales tax. A copy of the University’s Tax Exempt Certificate is available if needed by the supplier.
    16. If grant funds are being charged, cardholders are responsible for seeing that all granting agency requirements are followed.
    17. Records must be completed and turned into the procurement card auditor on a monthly basis. Records are expected to be in the possession of the procurement card auditor within 30 days of the end of the billing cycle date. It is recommended that these records are hand-delivered to the assigned drop-off area in the Controller's Office. NOTE: These records become permanent records within the Office of the Controller. We recommend you have copies made before turning in these records.

    The cardholder should use basic security measures, as outlined below, to guard against fraud:

    1. DO sign your card as soon as it arrives.
    2. DO keep the card in a secure location; guard the card number carefully.
    3. DO save receipts and statements in a secure area (they may contain your card number).
    4. DO keep an eye on the card during the transaction, and retrieve it as soon as possible.
    5. DO always know where your card is. If you can’t find the card, assume the worst: Have your account canceled and request a new card.
    6. DO audit your monthly statement closely. Make sure all charges shown are legitimate charges.
    7. DO visit reputable, familiar merchants whenever possible.
    8. DO report fraud immediately to Procard Administration.
    9. DO NOT discard credit card slips in public areas; destroy them. Thieves can acquire your card number from receipts, slips and statements.
    10. DO NOT lend your card to anyone.
    11. DO NOT give your card number to anyone over the phone unless you know you are dealing with a reputable vendor.

    1. Personal Items
    2. Alcoholic Beverages
    3. Consultant fees/honorariums
    4. Weapons/Ammunition
    5. Controlled Substances (prescription drugs, narcotics)
    6. Custom Logo Items
    7. Capital Equipment (items over $5000.00)
    8. Entertainment Costs
    9. Maintenance Agreements
    10. Radioactive isotopes
    11. Travel (lodging, tickets, etc.)
    12. Cash Advances
    13. Personal Services
    14. Gasoline/Oil
    15. Works of Art
    16. Gifts
    17. Telephone Services (local/cell)
    18. Computers

    This is not an all-exclusive list. For questionable items, please contact the procurement card auditor. For more information, see the list on the Purchasing web site.

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