Policy 7102 — Purchasing Card Policy and Procedure

Policy section:
Section 7100-7199 Purchasing, Claims and Reimbursement
Policy number:
Purchasing Card Policy and Procedure
Approved By:
The Vice-President, Administration
Approved date:
March 5, 2008
Effective date:
March 5, 2008
Administered by:


University Purchasing cards are used to improve the efficiency of low dollar transactions. The purpose of this policy is to ensure the appropriate control and use of such cards


The Controller is authorized to issue, suspend, cancel and set transaction limits for University purchasing cards up to $25,000 per transaction and up to $25,000 per month.

The Vice-President Administration may set limits over $25,000 per transaction and over $25,000 per month.

The Controller is authorized to configure cards to block certain merchant codes for purposes such as to prevent transactions with industries with a higher than acceptable risk of card fraud.


3.1 Use of the Card

3.1.1 The Controller may issue a Purchasing Card upon application by an employee approved by the appropriate manager or grant holder. Before a Purchasing Card is issued, the recipient must complete the "Purchasing Card Application" form (Appendix A), and must read and sign the "Employee Acknowledgement of Responsibilities and Obligations for the Use of the US Bank Canada Visa Purchasing Card" form (Appendix B).
3.1.2 Cards are assigned for use by the Cardholder only and must not be used by any other person.
3.1.3 All charges to the card will be paid by the University and will be charged to the general ledger account noted on the Purchasing Card application unless a different account has been included on the monthly card reconciliation report.
3.1.4 If the Controller so requests, a Cardholder will immediately return their Purchasing Card to the Financial Services Department.
3.1.5 If a Cardholder ceases to be an employee or changes their position the Cardholder’s Purchasing Card will be cancelled and the Cardholder will immediately return their Card to the Financial Services Department.
3.1.6 A Purchasing Card may only be used to make purchases for the University.

3.2 Guidelines

3.2.1 A Purchasing Card may only be used for transactions up to the approved transaction limit including delivery charges and taxes, and up to the approved total limit per month. Invoices which exceed the per transaction limit may not be split to create two or more credit card transactions that do not exceed that limit.
3.2.2 Cardholders will instruct suppliers to ship goods to Mount Allison University, Central Receiving, 10 King St, Sackville, NB Canada, E4L 1A3 and to record on the outside of the package and on all packing documents and correspondence the Cardholder's name and the words "Paid by Visa", but not to record the Visa number on either the package or any documents.
3.2.3 A Purchasing Card will not be used to

  • purchase goods or services from any University employee or any member of any employee's family,
  • obtain cash, purchase alcohol, narcotics, radioactive materials and other hazardous materials,
  • purchase computer hardware
  • purchase laboratory or research animals,
  • lease or rent equipment including wireless phones, internet services or any services that continue for longer than 60 days, or
  • pay salaries, wages or consulting fees,

Notwithstanding the above, the Controller may in special circumstances configure a Purchasing Card so that it may be used to purchase any of the above goods or services.
3.2.4 The Purchasing Card may be used for purchases outside Canada. However, in such cases the Cardholder must inform Financial Services of any pending delivery of goods from outside of Canada and the details of the purchase of those goods.
3.2.5 If goods purchased using a Purchasing Card are returned, it is the Cardholder’s responsible to return those goods and to ensure that a credit is placed on the Purchasing Card.
3.2.6 Cardholders must either have the shipping costs absorbed by the supplier or have the supplier include the costs on the invoice so that those costs are included in the amount that is charged to the card.
3.2.7 Cardholders will require the supplier to provide proof of purchase (i.e., a supplier invoice, itemized sales slip etc.) for each purchase.
3.2.8 Cardholders should advise suppliers that full billing cannot occur until full shipment is made. If partial shipment is made, billing for that portion of the order may be processed.

3.3 Liability

Liability for payment of charges on the Purchasing Card rests with the University except for purchases that have been made in violation of this Policy.

3.4 Lost or Stolen Card

**The Cardholder must report a lost or stolen Purchasing Card** immediately both to the US Bank Canada at 800-588-8067 or at (416) 306-3636 (This number may be reached 24 hours per day and seven days per week) and to the Mount Allison Purchasing Manager.

3.5 Monthly Billing Procedures

3.5.1 Final detailed statements will be available on the US Bank Canada website by the 6th day of each month, or by the next working day if the 6th day falls on a non-working day. Cardholders will then receive an email message advising that the billing cycle has closed and the statements are ready to be verified. Cardholders who will be absent from the University on the day the statements will be available will find interim information on the website that may be adequate for verifying transactions as per section 3.6.2 3 below and will provide Financial Services with an interim statement before departure from the campus.
3.5.2 Each Cardholder's monthly credit limit will be restored to its full value when they provide Financial Services with the final statement for the prior month.
3.5.3 By the 10th day of each month, the Cardholder will 

  • a) verify the transactions on the statement for the previous month by attaching seller’s invoice to the card statement,
  • b) verify and populate the software with the taxes related to the transaction,
  • c) verify the transactions by account number(s);
  • d) attach proof of purchase documents arranged in the order as the purchases are listed on the statement;
  • e) sign the statement;
  • f) when the cardholder makes purchases charged to accounts for which the cardholder is not an authorized signing officer the appropriate signing officer must approve the charge by signing the statement or providing other evidence of authorization (e-mail, etc.), and
  • g) forward the documents to Accounts Payable at Financial Services.

3.5.4 The University shall pay the account in full on or about the 15th of the month
3.5.5 Transactions will be charged to the GL account number provided on the employee application form unless the cardholder informs Financial Services in writing to charge the expenses to an another GL account


4.1 Any errors on a monthly statement, such as incorrect amounts or duplicate charges, must be reported by the Cardholder as soon as possible during normal working hours to the US Bank Canada by phone at 800-588-8065, or by facsimile at 888-974-3464, and to Financial Services.
4.2.1 When there are such errors the cardholder must,    

  • a) contact the supplier;
  • b) if the supplier cannot demonstrate that there is no error, have the supplier credit the account; and
  • c) if the supplier will not credit the account within 60 days after the date of the first statement on which the disputed charge occurred send the Cardholder Dispute Form (Appendix C) and any necessary documentation by facsimile to US Bank Canada at 888- 974-3464.

The US Bank Canada will research any disputed charges and make necessary adjustments. Amounts will remain charged to the appropriate GL account until the matter is settled.


A Cardholder summary will be provided annually to the Vice President Administration. This summary will include a list of cards issued, cancelled or suspended and changes in any Cardholder limits or blocking.


6.1 Inquiries related to using a card or applying for a card should be directed to the Purchasing Manager at 364-2294 or purchasing@mta.ca.
6.2 Inquiries related to Cardholder statements should be directed to the Accounts Payable Technician at 364-2443.