Procurement Card (P-Card)
- Effective Date
- October 11, 2007; amended May 27, 2010, September 27, 2011, September 16, 2021, May 12, 2022, and November 21, 2023
- Board Policy Reference
- CFF
Purpose
The Procurement Card (P-Card) Program provides Blinn College District with an efficient and cost-effective purchasing and payment process for making small dollar purchases for goods and services. To use this process, existing purchasing guidelines must be followed and purchases must be made from vendors that accept Master Card.
Types of Cards
Blinn College District utilizes two types of cards issued by JP Morgan Chase:
- Procurement Cards (P-Cards) – Issued in the name of a full-time employee for small dollar purchases of goods and services on behalf of the College District. Purchases under $1,500.00 per transaction do not require the requisition/purchase order method. (See Blinn College District Purchasing Procedures.)
- Travel Cards – Issued to individuals for travel-related expenses such as lodging, meals, car rentals, and parking. (See Travel Card Procedures.)
Procurement Card Security
The cardholder is responsible for the security of the P-Card. Cards must be kept in a secure location, and only the cardholder may use their assigned P-Card. P-Cards or account numbers must not be loaned to other employees. Cardholders are responsible for all charges on their P-Card.
Sales Tax
Blinn College District is exempt from Texas sales tax. A copy of the College’s tax-exempt certificate is available from the Purchasing Department. The District’s Tax Identification Number appears on all P-Cards.
Procurement Card Restrictions
Most P-Cards have a $1,500.00 single transaction limit, unless otherwise set by the supervisor. Certain Merchant Category Code (MCC) Groups are prohibited from P-Card use. These are automatically restricted during purchase authorization. Restrictions include, but are not limited to:
- Liquor
- Cash Advances
- Independent Contractor Payments
- Personal Use (all purchases must benefit the College District)
- Gift Cards
- 1099 Reportable Expenses (e.g., services or repairs)
- Splitting purchases to avoid transaction limit
- Capitalized Equipment/Fixed Assets
- Computers, computer hardware, software, projectors, printers, scanners
- Office supplies, fax machines, cameras
- Furniture
- Printing
Missing Receipts
If a receipt or invoice is missing, the cardholder must contact the vendor for a duplicate. If unavailable, the cardholder should contact the Purchasing Agent. If the Purchasing Agent cannot obtain a duplicate, a Procurement Card Missing Receipt Form must be completed and signed by both the cardholder and their supervisor, and submitted with other receipts.
Disciplinary Actions
Failure to comply with these guidelines may result in disciplinary action under a “three-strike” system:
- First occurrence – Cardholder receives a warning.
- Second occurrence – Three-month suspension of P-Card privileges and mandatory refresher training.
- Third occurrence – P-Card cancellation.
Strikes are kept on record for a rolling one-year period. Cardholders may apply for a new P-Card one year after cancellation and must attend training before issuance.
Use of the P-Card for personal gain or willful unauthorized use results in immediate termination of P-Card privileges and may result in further disciplinary action, including termination of employment and possible civil and criminal prosecution.
Procurement Card Renewal
The Purchasing Agent ensures all P-Cards are reissued before expiration. Departments should review previous year’s usage prior to renewal to assess need.
Surrender of Procurement Card
The P-Card remains the property of JPMorgan Chase Bank. Human Resources will notify the Purchasing Agent upon cardholder resignation or termination, and the agent will terminate the account online. The P-Card must be returned to the Purchasing Agent for disposal.
Changing P-Card Limits & Updating Cardholder Information
Supervisors or budget officers can submit a JPMorgan Chase Purchasing Card Account Application Form to the P-Card Administrator to change card limits or update information. Name changes require proof.
Temporary increases in transaction limits may be requested by the supervisor or authorized person by contacting the Purchasing Agent, providing the following information:
- Cardholder’s name
- Last eight digits of the P-Card number
- Merchant name
- Amount of purchase
- Description of purchase
Procurement Card Support
- JPMorgan Chase: For customer service or lost/stolen card, call 1-800-890-0669 (24/7). Notify the Director of Purchasing and Transportation or Purchasing Agent after contacting the bank.
- Blinn College District Director of Purchasing and Transportation: Contact for most P-Card issues such as rejected or disputed transactions.
- Purchasing Agent: Assists cardholders, processes applications, updates information, and reviews transactions for compliance.
Obtaining a Procurement Card
Complete the JPMorgan Chase Purchasing Card Application Form (Section A) following the instructions (Section D), have supervisor approve, and submit to the Director of Purchasing and Transportation. The form is forwarded to the Purchasing Agent for processing with JPMorgan Chase. P-Card issuance requires mandatory training.
Procurement Card Use
- Purchases in Person:
- Ensure total amount (including shipping, handling, freight, etc.) does not exceed limits.
- Advise vendor of tax exemption. Obtain and use the tax-exempt certificate if needed. If sales tax is charged in error, request a credit.
- Obtain an itemized receipt identifying each purchased item.
- Follow department instructions for recording the purchase and keep all receipts secure.
- Purchases by Telephone:
- Follow applicable instructions for in-person purchases, including shipping and handling.
- Indicate to vendor that payment is on Master Card and advise of tax exemption. Request a credit if tax is charged in error.
- Ask about educational discounts or membership in a Purchasing Cooperative.
- Record the name of the person taking the order, place the order, provide card details, and request confirmation.
- Give complete delivery instructions (goods must ship to Central Receiving).
- Purchases by Internet or Fax:
- Follow in-person purchase guidelines, including shipping and delivery instructions.
- Ensure the vendor’s site is secure (look for "https" and a padlock symbol) before providing card information. Print a confirmation for records.
- If faxing, keep a copy of the order and request a confirmation or paid receipt.
Returns, Damaged Goods, Credits
- Contact vendor immediately regarding problems with received goods.
- Retain original packaging until items are confirmed for retention. Some items require packaging for returns.
- Read all instructions and check packing slips for accuracy.
- Obtain a “Return Authorization Number” if required by vendor.
- Be aware of potential restocking fees (not to exceed 15%).
- If returns are not authorized or credited properly, see the Disputed Transactions section for assistance.
General Reconciliation
Cardholders are responsible for monthly reconciliation of their P-Card transactions:
- Attach related receipts to expense charges in Chrome River. If no itemized receipt is available, list purchased items.
- List attendees when food/meals are purchased for meetings or presentations (including student organizations).
- Contact vendor for missing receipts; if unobtainable, use the Procurement Card Missing Receipt Form (found on the Blinn College District home page), signed by both cardholder and supervisor.
- Enter appropriate budget account(s) and object code(s) in Chrome River. Submit reconciled charges for supervisor approval.
- Supervisors/budget officers must review, verify, approve or return for correction all transactions in Chrome River. Charges to other accounts require approval from the assigned budget officer.
Review of Transactions
A three-step monthly review process is conducted:
- Cardholders review all transactions for appropriateness and documentation.
- Supervisors/budget officers review and approve transactions in Chrome River monthly.
- P-Card Coordinator and/or supervisor perform periodic transaction reviews.
Disputed Transactions
Disputed transactions include returns or discrepancies between cardholder records and the Master Card statement. Common reasons include:
- Unauthorized charges
- Difference in authorized and charged amounts
- Duplicate charges
- Failure to receive credit
- Failure to receive the product
- Returned merchandise
- Defective merchandise
- Unrecognized charges
Cardholders should attempt to resolve disputes directly with vendors. If unresolved, contact the Purchasing Agent for assistance.