1. PCard Plus Revised Feb 2007

2. What is PCard Plus?  Business Meetings Expenses  Business Entertainment Expenses  Employee Recognition Expenses  Employee Farewell Expenses  Special Event Expenses  Service & Recognition Awards

3. Program Definition PCard Plus allows expenses related to business meetings and business entertainment, including special events, where the University of Arizona will benefit, where business is conducted and/or business objectives are pursued. In addition, the University supports employee recognition events / retiree farewells and/or awards; PCard Plus also allows these expenses. Any related expense must first be allowable on the specified FRS account and object code; State Accounts and Sponsored Project Accounts may NOT be used in conjunction with this program.

4. What are the Benefits of PCard Plus?  Greater Flexibility in Planning and Paying for related expenses  Reduction in PCard Restrictions & Exceptions to Policy  Optional Program  Departments may add additional Internal Controls  Cardholder Based  Added or Removed at any time

5. What are the Controls for PCard Plus?  Mirrors the controls and requirements needed for purchasing similar items via a Check Request, PPO or Purchase Order  Additional application (request) process  Department Head, Liaison and Cardholder signature requirement  Mandatory training requirements for cardholders and business offices to join the program  Reviewed by PACS Compliance, FSO Compliance, Internal Audit and Departmental Review

6. Circumstances for Use:  Food, including but not limited to grocery stores, catering expenses & restaurants  Meeting room / event space  Related expenditures, including but not limited to meeting supplies, paper products, decorations, AV or other related equipment rental & small dollar (less than $15.00) mementos  Service awards (non-cash, non-taxable awards for years of service) or achievement awards (non-cash, non-taxable awards for exceptional achievements with significant departmental impact)

7. Unallowable Expenditures Alcohol Expenditures for neither employee social or recreational functions - where no business is conducted nor business objectives are present (for example, memorial services, Christmas or other holiday related parties, employee social functions) Tips to merchants (i.e. restaurants) exceeding 20% Cash awards or gift certificates / gift cards to be used as awards Taxable awards

8. PCard Plus Policies & Procedures Responsibilities; Complying with Purchasing Policy: Comply with The University of Arizona Policy for Food & Catering http://w3.arizona.edu/%7Epolicy/catering.shtml http://w3.arizona.edu/%7Epolicy/catering.shtml –Definition: Wherein food is delivered, served and removed –On campus and over $500, must use Student Union –On campus, catered and under $500, use designated approved caterer list –On campus, not catered and under $500, use vendor of choice –Off campus, catered, any dollar amount, use designated approved caterer list –Off campus, not catered, any dollar amount, use vendor of choice (events at a restaurant do not fall under the Catering Policy)

9. Catering & Food Services Policy Flowchart

10. PCard Plus Policies & Procedures Responsibilities; Complying with Purchasing Policy: Refer any rental agreement or contract to The University of Arizona Contracting Office for review and signature Record the date, business purpose and attendees of a meeting or entertainment/event with the PCard documentation by completing a PCard Plus Use Form (or equivalent document). Include sign up sheet and/or meeting agenda if applicable

11. PCard Plus Policies & Procedures Responsibilities; Complying with Financial Services Policy: Verify the appropriate accounts are used for expenditures; see FRS Policy 9.10, Table 1, for the Allowable Expenditure Summary at: http://www.fso.arizona.edu/fso/deptman/9/910reimb.html - table1 http://www.fso.arizona.edu/fso/deptman/9/910reimb.html - table1 http://www.fso.arizona.edu/fso/deptman/9/910reimb.html - table1 Verify the appropriate object codes are used for expenditures; for a complete list of object codes see: http://www.fso.arizona.edu/fso/deptman/oc_quickref.pdf http://www.fso.arizona.edu/fso/deptman/oc_quickref.pdf –For Business meeting expenses use OC 5170 –For Business entertainment use OC 5550 –For other events/service awards, consult with appropriate Fund Accountant

12. PCard Plus Policies & Procedures Responsibilities; Complying with Financial Services Policy: Comply with The University of Arizona Policy for Employee Recognition, Employee Farewells, Business Meetings and Business Entertainment, as well as Service & Achievement Awards under FRS Policy 9.10 http://www.fso.arizona.edu/fso/deptman/9/910reimb.html# general http://www.fso.arizona.edu/fso/deptman/9/910reimb.html# general http://www.fso.arizona.edu/fso/deptman/9/910reimb.html# general

13. PCard Plus Policies & Procedures Responsibilities; Complying with Financial Services Policy: Employee Recognition, Employee Farewell Events –The costs of each recognition event do not exceed a "reasonableness" level (defined as no more than $15 per person per event to cover the cost of refreshments or a modest meal, minimal decorations, mementos etc.) –The event is held preceding, during, or immediately following normal business hours –The recognition events must be non-discriminatory and held for the benefit of all eligible departmental employees

14. Responsibilities; Complying with Financial Services Policy: Service & Achievement Awards  Non-taxable awards only allowed on PCard- Any award of tangible personal property of $75 or less (such as a pen or plaque) Taxable awards must be reported through Payroll PCard Plus Policies & Procedures

15. Responsibilities; Complying with Financial Services Policy: Retiree Farewell awards  Must meet HR minimum qualifications (i.e. continuous employment of 10 year or more)  Non-taxable awards only allowed on PCard  Traditional retirement awards of less than $400 are non-taxable  Taxable awards must be reported through Payroll PCard Plus Policies & Procedures

16. Responsibilities; Complying with Financial Services Policy: * Business Meetings * Business Meetings The primary purpose is to conduct business or disseminate information. Business meetings require advance planning, involve groups of people and have considerable cost. Code Business Meeting expense to object code 5170. 5170 * Business Entertainment * Business Entertainment The primary purpose of Business Entertainment is to further business relations. Business Entertainment is smaller in scale, includes a small number of people and is fairly low cost. Code Business Entertainment to object code 5550. The primary purpose of Business Entertainment is to further business relations. Business Entertainment is smaller in scale, includes a small number of people and is fairly low cost. Code Business Entertainment to object code 5550.5550

17. PCard Plus Policies & Procedures Responsibilities; Complying with Records Retention Policy: Maintain itemized original receipts and PCard Plus Use Form (or equivalent document) in conjunction with the Records Retention Policy Comply with FSO procedures for centralization of PCard documentation

18. PCard Plus USE FORM What am I doing? Why am I doing it? Whom am I doing it with? How am I paying for it? Am I within University Policy? The Use Form guides cardholders to justify these types of meeting / event purchases:

19. PCard Plus Training & Compliance PCard Plus Policy Training is required for all cardholders, reconcilers and approvers prior to program approval PCard Plus enhances the purchasing capabilities of the Classic PCard program. However, all policies and procedures under the Classic PCard Program apply to PCard Plus unless specifically noted Procurement and Contracting Services may suspend or terminate the program at any time if the cardholder or department does not comply with circumstances for use or mandatory responsibilities. In addition, purchases made outside the scope of the program may result in a violation to PCard or FRS Policy, PCard suspension or Pcard cancellation The Department Liaison or Department Head may suspend or terminate the program at any time by cardholder or department with an email to the PCard Office.

20. Do I really need PCard Plus? Analyze your Departmental spending trends in these areas. How often do you make these types of purchases? Which employees within your Department need this type of access? Do ‘food’ purchases made in your Department fall under the Program Definition? –Food for research, animal feed, water for research, food for patients (i.e. snacks for patients after blood draws), food for training (nutritional research or classroom use) is currently allowed on the PCard WITHOUT the PCard Plus Program or an Exception to PCard Policy. Does my Department have the support and controls in place to handle the additional reconciliation requirements? Will the cardholders fulfill their obligation to complete the paperwork and maintain itemized invoices or receipts for these types of purchases?

21. How do I sign up for PCard Plus? Department Reconciler & Approver attend PCard Plus Policy training Apply for PCard if a new cardholders Submit PCard Plus Request Form for each PCard to be coded with PCard Plus Cardholder attends PCard Plus Policy training If Cardholder fulfills request criteria, set up with PCard Plus