The NMSU Procurement Card (PCard) program is designed to allow faculty and staff to procure low-dollar, low-risk purchases through a credit card. The PCard program increases efficiency by eliminating the need for small-dollar requisitions with non-vendors. PCard purchases result in quicker turnaround time, greater flexibility in ordering, and reduced paperwork.

The PCard is a privilege granted to faculty and staff. It is to be used responsibly and appropriately. Fraudulent or intentional misuse will result in revocation of the PCard, possible criminal charges, and discipline up to and including termination.

4C.2 General Rules

4C.2.1 Spending Limits

Individual transactions must be less than $5,000, inclusive of shipping and handling costs. Transactions at $5,000.00 and greater will be denied at the point of sale. The bi-weekly spending limit is $20,000. Spending limits can be increased by submitting a PCard Limit or Use Request in Aggie Service Desk. Such requests are evaluated on a case-by-case basis and are expected to be rare.

It is not permissible to make multiple charges on the same day or on consecutive days to the same merchant to facilitate a charge that exceeds $5,000 (except for the payment of conference registration fees for multiple attendees).

If an allowed PCard purchase involves approval of unclear or ambiguous terms and conditions, legal liabilities, or has the potential for significant financial losses and long-term obligations, it requires a contract between NMSU and the supplier. Submit a PCard Contract Request through AggieMart for review and approval by Procurement Services.

4C.2.2 Restricted Purchases:

In addition to the expenditure policies outlined in the Business Procedures Manual, certain items are prohibited from being purchased on the PCard or require additional approval. For more details, refer to the PCard Usage Guidelines.

4C.2.3 Sales Tax

NMSU’s State tax identification number is provided on the PCard. NMSU is tax-exempt for purchases of goods; however, the University does pay gross receipts tax on purchases of services. It is the cardholder's responsibility to ensure that NM sales tax is not charged on goods by providing suppliers with a copy of the Sales and Use Tax Exempt Status Certificate.

It is the cardholder’s responsibility to notify the vendor of tax-exempt status and obtain a refund if tax is inappropriately charged.

If the supplier is not accepting of NMSU’s tax exempt status, please contact NMSU Vendors group at vendors@nmsu.edu for assistance.

Cardholders should contact the vendor for a tax credit in cases where sales tax was incorrectly assessed on purchases.

4C.2.4 Shipping

All PCard orders can only be shipped to an official NMSU address, research facility location, or satellite location. PCard deliveries should not be made to NMSU’s Central Receiving. The cardholder is responsible for ensuring receipt of materials as well as any follow up efforts required to resolve delivery problems, discrepancies, damaged goods, billing problems, and returns.

4C.2.5 Recurring Payments

The PCard may be used for recurring payments for allowed items or services that do not exceed $20,000 per year, or $1,666.67 per month. However, a PO may be more appropriate for high volume transactions. Please consult with Procurement at purchasing@nmsu.edu if you have questions on best procurement method.

4C.2.6 Gifts or Free Merchandise

Under no circumstances should an employee accept gifts, free merchandise, favors, or gratuities either directly or indirectly from any vendor, representative, or business firm for ordering goods or services with a PCard. This applies to every employee regardless of the nature of their position at NMSU. Please contact asc@nmsu.edu immediately if a supplier provided you with an unsolicited gift or free merchandise.

4C.2.7 Sharing the PCard

Only the authorized cardholder may use the PCard. Delegation of authority is not permitted. Sharing the PCard with others is prohibited as it increases the likelihood of fraud. The cardholder is held responsible for all charges made against their PCard. As such, cardholders should monitor their PCard transactions carefully and alert the PCard team and bank if fraud is suspected. A cardholder may make a purchase, such as training registration, on behalf of another departmental employee; however, the cardholder is responsible for the transaction.

4C.2.8 International Purchases

PCard may be used for international transactions as long as all rules and requirements for purchases, outlined in the BPM, are met.

The U.S. Treasury Department's Office of Foreign Asset Control (OFAC) maintains a list of countries with which economic trade sanctions have been imposed. Under no circumstances should a shipment or purchase be made to or from a country that appears on the sanctioned list regardless of the funding source.

Federally funded contracts may further restrict purchases from certain parties who are deemed excluded from receiving federal contracts, subcontracts, etc. These individuals and/or businesses can be viewed on the U.S. Treasury Department website. Under no circumstances should purchases be made from these listed parties using a PCard tied to federal funds.

An international transaction fee may be assessed by the bank and added as a separate line to the PCard transaction. No receipt is necessary for this fee

NMSUs tax-exempt status does not protect against foreign sales tax or value-added tax (VAT), which may be assessed on international transactions.

4C.3 Cardholder Eligibility

A cardholder must be a regular NMSU employee. No temporary, student, or affiliated employees are eligible for a PCard. Term employees may be eligible depending on the situation. All cardholder requests require appropriate approval by the college or division.

The department must immediately notify asc@nmsu.edu of any change in cardholder’s employment status, such as termination, transfer, or change in employee FTE.

4C.4 Responsibilities

The cardholder is expected to adhere to university policies and procedures. The PCard is a privilege granted by the university, and it is expected that it will be used responsibly. PCard purchases should be made in accordance with all applicable procedures and usage guidelines unless the Director of Procurement Services has granted an exception, in writing. Violation of the PCard policies may result in loss of this privilege. To request a PCard, refer to https://inside.nmsu.edu/asc/pcard/ - Obtaining a PCard

4C.4.1 Cardholder responsibilities – for complete information, see Becoming a Cardholder section

Manage Disputes/Credits/Fraud
- The cardholder is responsible for safekeeping of the PCard
- It is the cardholder’s responsibility to contact Wells Fargo (the Issuing Bank) immediately to report fraud or disputed transactions.
- The cardholder should ensure credits received from the Issuing Bank are applied to the correct index and account code.
Report Lost or Stolen Cards
Cardholders must call the Issuing Bank immediately and notify asc@nmsu.edu in the event of a lost, misplaced or stolen card. If the PCard is stolen on campus property, cardholders must also contact the NMSU Police Department.
Failure to make timely notifications could result in the department being responsible for unauthorized transactions. The department/account will be liable for any charges that may have occurred before the PCard being canceled.
The credit card will be canceled immediately, and a replacement credit
Account for Returned Merchandise
Cardholders are responsible for ensuring credit is received and applied to the correct index and account code.

4C.4.2 Approver responsibilities – for complete information, see Departmental Responsibilities section

A PCard approver/backup approver is responsible for reviewing and approving cardholder transactions in the PCard system. Approvers are responsible for PCard Compliance and ensuring PCard processes are followed.
The Approver role must be an employee with sufficient knowledge of the type of business that the cardholder conducts and be able to add value to the approval process to ensure purchases are appropriate.
Approvers must meet the following criteria:
Minimum grade level 5; finance classification recommended
Oversight by unit business office to ensure approver has an understanding and familiarity of account codes, business processes, how to document business purpose, and supporting documentation requirements (i.e. supplemental forms).

4C.4.3 College or Division Business Manager/Officer

College or Division fiscal officers, on behalf of the Dean or VP, responsibilities:

Respond to central exception reports
Respond to requests for incomplete actions
Report non-compliance to asc@nmsu.edu
Ensure compliance with Fiscal Responsibilities

4C.5 PCard Reconciliation and Accounting – see Departmental Responsibilities section

The PCard statement cycle is 14 days. An approver has 20 calendar days to review and approve the statement. Transaction notifications are sent to cardholders every Tuesday for coding review. Cardholders are strongly encouraged to code transactions daily. If coding is not completed within the designated PCard cycle period, a notice is sent to both the approver and delegates, requesting email confirmation of approval. The cardholder will then receive an infraction notice.

An employee may not be the final departmental approver of his or her own PCard transaction/ A subordinate should not be assigned to approve the transactions of their direct supervisor.

An approver should be an employee with sufficient knowledge of the type of business that the cardholder conducts, to add value to the approval process and ensure purchases are appropriate. For information on special handling of non-compliant or questionable transactions, see PCard Usage Guidelines.

Receipts are required for all PCard transactions. Do not include a missing receipt form when reconciling; instead, follow special handling instructions for no-receipt purchases.

Cardholders shall follow RMR Retention Guidelines for Procurement Card receipt imaging.

4C.6 PCard Limit or Use Request

PCard may also be used for purchases that cannot be made through the standard procurement method or for one-time purchases from non-vendors. To request the use of PCard in these situations, submit a PCard Limit or Use Request ticket to the Aggie Service Desk.

4C.7 Compliance Review

PCard is a privilege that requires adherence to business procedures. Compliance is everyone's responsibility and must be a part of everyday work activities. Financial compliance ensures that university policy and procedure are followed, and actions are taken for non-compliance when applicable. Any misuse of the PCard, failure to utilize the PCard correctly, or to adhere to the electronic approval/reconciliation schedule may result in immediate suspension or loss of PCard privileges. Department administrators can request that a PCard be suspended or canceled by submitting an email to asc@nmsu.edu.

It is the responsibility of the college or division fiscal officers to provide fiscal oversight and report all PCard non-compliance. Administration & Finance will perform a monthly sample review as an added assurance level. In addition, Audit Services may at any time perform internal control reviews. PCard policy and process violations will be tracked. Based on the type of infraction, a warning may be given. However, repeat violations could result in additional training, card suspension, or card cancellation as well as appropriate personnel action.

Example policy violations include:

Any violation of the NMSU Business Procedures Manual
Incomplete PCard action, including missing business purpose, itemized receipt, or pre-approval reference
Purchase of a restricted item, without pre-approval
Splitting charges to bypass the single transaction limit
Failure to fully approve
Inappropriate approval of PCard actions
An audit finding by the Office of Audit Services