Using a University Corporate Card

The new policy Using a University Corporate Card is posted and in effect. This applies to both the PCard and the Travel Card (also known as the Travel & Expenses Card, or T&E Card). The deadline for reconciling both kinds of cards is within 60 days of the expense (not the end of the trip, if the card was used for travel-related expenses). 

If you have older card activity that is not yet reconciled, you are encouraged to complete it as soon as possible. Beginning October 15, 2024, any transaction that is older than 60 days will be reviewed and may be reported as taxable income.

Highlights of significant changes

Changed

Combined two policies into one policy: Using the University Procurement Card and Using the University Travel Card policies are now Using a University Corporate Card.

Raised the single transaction limit from $2,500 to $5,000 and monthly limit from $10,000 to $15,000. (Still not acceptable to split purchases to avoid the limit, speak with your department card administrator about a limit increase when needed.)

Changed the PCard reconciliation deadline from 30 days to 60 days, which aligns both corporate cards (and out of pocket expenses) to make card management consistent for departments. Card reconciliations are due within 60 days. If reconciliations for all cards are not done within the time requirement, the amounts may be reported as taxable income to the cardholder.

Removed

There is no longer a requirement for physical signatures on receipts if the cardholder themselves uses My Wallet to reconcile, or the cardholder makes an electronic request to FinOps to complete the reconciliation (for Phase 1 PEAK units who are served by FinOps).

Added

Expenses submitted after 60 days may be reported as taxable income. See the Tax Tip from the Tax Management Office for August, 2024. Late expenses will be reviewed by the Tax Management Office beginning October 15.

A reminder message is planned for all cardholders prior to October 15, but please share this message broadly with your cardholders and finance support staff.

Reminders

  • All expenses should be reconciled within 60 days of the date the expense was incurred.
  • Approvers can add comments to expense reports if they’ve done fact-finding themselves about why expense reports were not processed by the deadline. This will aid the Tax Management Office in their review.

If people need assistance with card limits, they should reach out to their Department Card Administrator (DCA). DCAs should reach out to [email protected].

Additional Resource

A continuing education session sponsored by the Controller’s Office and Financial Systems User Network (FSUN) was held on Friday, September 6, 2024. The session explored the new policy Using a University Corporate Card.

The session covered: 

  • Similarities and differences between PCard and Travel & Expense Card. 
  • Reasons for a new policy.
  • Expectations for cardholders and approvers.
  • Recouping sales tax for tax-exempt purchases.
  • Late reconciliation procedures and review for potential taxable income. 
     

If you attended the session, note that the presentation and materials have been updated from the original version to correct a minor error. The corrected statement is: "Units can set lower thresholds guidelines to recoup sales tax." 

View the session recording and materials on the Financial Continuing Education Video Channel. 

All continuing education session recordings are available at controller.umn.edu/training under "Continuing Education (Best Practice, Policy) Materials."