|Area Responsible for Administration:||Financial Services|
|Approval Authorities:||Senior Executive Committee|
|Approval Date:||November 2016|
|Review Timeline:||Every 3 Years|
To provide guidance on the use of Seneca’s Corporate Purchasing Card (P-Card) and on the procurement and payment of low dollar value goods and services to ensure acceptable levels of control and accountability.
This policy applies to all Seneca employees who have requested or hold a Corporate Purchasing Card.
An asset that has a useful life of over one (1) year and a value greater than $5,000.
A person, corporation, partnership, or business entity that sells goods or services to Seneca.
1. Policy Statement
1.1 Seneca has established a partnership with the US Bank Corporation Canada to provide and support its Visa-based Corporate P-Card (P-Card) program.
1.2 It is the policy of Seneca to provide guidance on the use of Seneca’s P-Card to ensure acceptable levels of control and accountability. This policy will address the procurement and payment of low dollar value goods and services.
1.3 The main objectives of the P-Card are as follows:
1.4 A P-Card is the property of Seneca, but is issued in the name of the authorized employee. Seneca is liable for all transactions made on the card. The P-Card holder is responsible for the card and shall take appropriate measures to ensure that it is kept secure.
2. Roles and Responsibilities
2.1 Employees entrusted with a P-Card shall:
2.2 Supervisors shall:
2.3 The Compliance office shall:
2.4 The Finance department shall:
3. Requesting a P-Card
3.1 Permanent employees may apply for a P-Card using the Purchasing Card Request form if they meet the following requirements:
3.2 Employees must sign the Employee Acknowledgement of Responsibility and Obligations for the Use of the Royal Bank Visa Purchasing Card form prior to receiving a P-Card.
3.3 Each P-Card will have a preset limit per transaction and a maximum monthly spending limit. Authorized employees may use their P-Card for business purchases valued at:Limits for standard users and department purchasers are shown as follows:
Limits for standard users and department purchasers are shown as follows:
|Default||$3,000 transaction limit
$5,000 monthly limit
|Department Purchaser||$5,000 transaction limit
$25,000 monthly limit
Purchases must not be broken into smaller amounts in order to meet the transaction limit on a P-Card.
3.4 Exceptions to the standard P-Card limits listed in section 3.3 may be established for certain positions or circumstances. Temporary changes to standard P-Card limits may be established to address temporary needs. Requests for permanent or temporary P-Card limit increases requires completion of the Purchasing Card Request form and authorization by the department Vice President.
4. P-Card Use
4.1 Only the person whose name appears on the P-Card may use it.
4.2 A P-Card must only be used to make authorized official Seneca purchases that are within the limitations established for the P-Card and in accordance with existing Seneca policies and procedures.
4.3 P-Card holders may not use personal credit cards for expenditures related to Seneca’s business.
4.4 The P-Card must not be used for the following:
4.5 Original, itemized receipts are required for all purchased made using a P-Card. If ineligible expenses are identified through the reconciliation of monthly billing (see section 4.4), the P-Card holder shall reimburse Seneca for the amounts identified.
4.6 The Vice President, Finance and Administration has the authority to cancel an employee’s right to use his/her P-Card at any time. Circumstances that can lead to suspension or cancellation of an employee’s P-Card may include:
4.7 In the event of a lost, fraudulent, or stolen card, the P-Card holder must notify US Bank Corporation Canada Customer Service and the plan administrator in the Finance department.
5. Monthly Reconciliation
5.1 On a monthly basis, P-Card holders must review their transactions and enter the appropriate accounting codes and comments for each transaction by the ninth day of the month following the statement posting date. The reconciled statement must be approved by the immediate supervisor. Once approved, a copy of the statement and supporting documentation must be submitted to the Finance department by the end of the month.
5.2 Supervisors approving monthly P-Card statements must ensure that the expenses being claimed were necessarily incurred in the performance of Seneca’s business and that the appropriate documentation is provided.
5.3 No employee may approve their own P-Card statement. Approval at the next higher level must be obtained before a statement can be processed. If expenses are incurred for a group of employees, the most senior person involved shall make a claim on behalf of the group for the expenses.
5.4 Failure to record the appropriate accounting codes and comments for the transactions by the deadline as stated in section 5.1 will result in the transactions being recorded in a default expense account in the budget of the P-Card holder’s supervisor. Should this occur, the P-Card holder must prepare a journal entry to transfer the misattributed cost(s) to the appropriate budget line(s), in addition to submitting the reconciled statement and supporting documentation.
5.5 An employee who is four (4) or more weeks late in submitting his/her reconciled statement and supporting documentation to the Finance department will be considered delinquent. Their card will be placed on hold until the proper documentation has been received.
I,______________________(write full name) hereby acknowledge receipt of the Royal Bank Visa Purchasing Card (the “Card”) issued by U.S. Bank Canada. I acknowledge that the Card has been issued to me to make purchases in the course of my regular duties in connection with Seneca College (the “Customer”), and I will not use the Card to make personal purchases of any kind whatsoever. I fully understand that purchases made using this Card are to be authorized by a departmental manager with signing authority, in accordance with the usual College Procedures.
I acknowledge that I have read and agree to the terms and conditions of the Visa Purchasing Card Cardholder Agreement (the “Cardholder Agreement”), copy included, regarding my acceptance of this Card, and that I will not follow any policies or procedures that contradict, limit or vary the terms and conditions set out in the Cardholder Agreement. I confirm my agreement to the said terms and conditions by signing below and by retaining and using the Card.
I shall undertake to protect the Card and the card account number and realize that it is for my use only, not to be divulged to any other person (except a merchant with whom I am transacting on behalf of the Customer) without the written permission of the Seneca College Card Program Administrator. Should the Card be lost, stolen or suspended or compromised in any manner, I shall advise U.S. Bank Canada and the Card Program Administrator immediately.
Furthermore, I understand that this Card is the property of U.S. Bank Canada, provided to me on behalf of Seneca and that in the event of willful or negligent default of these obligations, U.S. Bank Canada and / or Seneca shall take recovery action, deemed appropriate, that is permitted by law. I agree to return this Card on the request of the Card Program Administrator.
The Organizational Compliance Department of Seneca (Plan Administrators) will monitor the usage and compliance of each card as outlined in Purchasing Card Policy. As Plan Administrators, at their discretion, they have the authority to cancel the Visa card upon indication of willful or negligent usage.
|No.||Card Details||Limits||Cardholder Initials|
|1.||Per purchase limit||$|
|2.||Default department code|
|3.||Signed card||Yes / No|
|4.||Total limit on card||$|
|5.||Card Number (last 4 digits)|
Card holder Signature: Date: