Inside Iowa State: Iowa State University

INSIDE IOWA STATE
May 3, 2002

American Express or purchasing card?
Here's your answer

Iowa State currently issues both the Purchasing card (P-card) and American Express corporate card (travel card). The cards have different purposes, controls and reporting capabilities. Separating their functions allows the university to meet reporting and internal control requirements. The following lists outline their function and appropriate uses:

Travel card

For employees traveling on university business. It may be used only for legitimate university travel-related business expenses.
Personal expenses no longer can be charged to this card.
Cardholders make payment to American Express and are reimbursed by the university (file a travel expense voucher).
Card reduces or eliminates the need for travel advances.
Since ISU is not paying American Express directly, it's not at risk of paying for unallowable charges.
Grace period on card provides adequate time for reimbursement to be processed.
To get a travel card application, call the controller's department, 4-2555.

P-card

For purchasing low-dollar supplies using a VISA credit card.
With the exception of Study Abroad Program, use for travel expenses is not permitted.
Cards have streamlined the purchasing process and eliminated check writing.
This month (May), use is expanding to include hospitality expenses for authorized cardholders.
Issuance to any employee requires approval from department chair and dean or director.
To get a P-card application, call the purchasing department, 4-4589.

P-card restrictions

Single transaction limit of $2,000 prevents cardholders from purchasing capital equipment, which needs to be recorded for inventory and tagged.
Cardholders must understand its allowable uses, request sales tax exemptions and reconcile transactions electronically in a timely manner. ISU makes one payment each month for all transactions.
P-card system does not capture travel-related information required for state and federal reporting; thus the travel expenses exclusion.

American Express or purchasing card? Here's your answer

American Express or purchasing card?
Here's your answer