Prohibited Purchases and Penalties

  1. Cash Advances - Not permitted.  Cardholders cannot use the PCard to obtain cash, such as money orders or traveler's checks.
  2. Cardholders are not to receive cash as a credit for the return of an item.
  3. Alcoholic beverages or tobacco products.  Cardholders cannot use the PCard to purchase alcohol or other items at liquor stores.
  4. 1099 Merchants.  Do not purchase services from merchants who use their Social Security Number to report their business to the IRS.  If you purchase services from a small business, please verify the corporate status of the merchant.  Example:  Inc. Co. Please notify Accounts Payable if you have any questions regarding 1099 merchants.
  5. All Medical Services are 1099 reportable merchants and therefore are not allowable charges on the PCard.
  6. A vendor (group, individual, company) performing a service for the University should NEVER be paid with the purchasing card or with CASH.   This is taxable income and must be paid by the appropriate channels.  
  7. Cardholders or Departments contemplating purchases of gifts, flowers, contributions and/or other sensitive items should refer questions to Accounts Payable or University Purchasing.
  8. Cardholders must report any inadvertent personal purchase to their PCard immediately and must immediately either reimburse ACU or arrange for a credit transaction from the merchant.  Documentation shall include proof of merchant credit or reimbursement by employee and attached with expense report by reallocation due date.
  9. Cell Phone Policy Payment - do not pay your cell phone bill with your purchasing card.   Please refer to the Finance Web page at www.acu.edu/fms and print the documents to be turned in to Payroll for cell phone reimbursement.   Cell phone reimbursements are considered taxable income by the IRS.
  10. Fuel/Mileage - If an ACU employee is using their personal vehicle for business, they need to track mileage and turn in an expense report for mileage reimbursement.  DO NOT charge fuel to the purchasing card.   the mileage reimbursement is to cover not only fuel but travel wear and tear on the vehicle. Fuel and mileage together should never both be paid to an individual.  
  11. All gift cards, certificates, cash, checks and direct deposits are always taxable income under IRS guidelines.   Due to the difficulty in tracking taxable wages from gift cards, the purchase of gift cards and certificates for anyone, not just employees, is not longer allowable.  
  12. Reimbursed Meals - Spousal meals should not be paid for by ACU.  If they are paid by ACU, reimbursement needs to be make to the university as soon as possible.   The yellow receipt should be attached to the expense report.   If they are not reimbursed the amount of the meal(s) will be added to the employees W/2.
  • Any cardholder may have his/her PCard suspended or revoked at any time at the discretion of PCard Administration, the Approving Department Head, or the Division VP.

Penalties

The use of the PCard is a privilege.  All Cardholders are responsible for knowing and abiding by the Purchasing Card Procedures.

  • Any violation of the PCard policy can result in suspension of the PCard or other penalties up to and including termination.