The purchasing card is considered to be the “best practice” purchasing method for best judgment purchases (up to $5,000), but cardholder’s usage is limited by the dollar limits established on the individual’s card. All purchases must comply with purchasing policies and procedures, accounting policies and procedures, and with extramural funding agency restrictions.
The following is a list of commonly questioned items:
1099 reportable services (consulting services, legal services, temporary help/clerical/labor) – A change was made to an IRS regulation (Treas. Reg. 1.6041-1(a)(1)(iv)) which places the 1099 reporting responsibility for purchases made via credit card solely on the entity issuing the credit card. As a result of the regulation change, the Purchasing Card can be used for reportable vendors, and any vouchers paid via Purchasing Card should not be reported by the UW to the IRS.
Alarm/security systems – If a service is being provided, refer to 1099 reportable services. Equipment purchases are allowable when all procurement policies and procedures are followed and transaction is coded or reallocated to appropriate class code to allow for proper capitalization per UW System Accountability for Capital Equipment (334) policy. May need approval to increase dollar limits on card in order for acceptance.
Alcoholic beverages – Alcohol is only allowable when purchased for resale or when hosting a conference dinner. Refer to UW System Travel Regulations Appendix A – Headquarters City and UW-Sponsored Events policy, Section F.2. for complete guidelines.
Ammunition – Allowable when purchased by appropriate department, i.e., Police and Security, and purchased on the mandatory Statewide Contract for Ammunition or if required to purchase specific ammunition not included in the contract.
Capital equipment or component parts – Allowable when all procurement policies and procedures are followed and transaction is coded or reallocated to appropriate class code to allow for proper capitalization per UW System Policy 334, Accountability for Capital Equipment. May need approval to increase dollar limits on card in order for acceptance.
Cash advances (ATM Machines) – Strictly Prohibited
Cash equivalents (Gift Cards, Gift Certificates etc.) – Strictly Prohibited. See Gift Cards for exceptions.
Chemicals – Allowable when all procurement policies and procedures are followed.
Cylinder gases – Allowable when all procurement policies and procedures are followed.
Drugs – Allowable when purchased by appropriate department, i.e., Student Health Centers, and when all procurement policies and procedures are followed.
EBay Purchases – The purchasing card may be used to purchase items from an online source, such as EBay, provided the risk of loss has been minimized to the maximum extent possible and State procurement rules are met. Since there are no refunds when purchasing from EBay, purchasers should do everything possible to determine the true condition of the item being purchased. When purchasing an operating piece of equipment, it is expected that an independent person or company will be used to validate the operating condition. Cardholders are encouraged to contact the Purchasing Agent that handles the particular commodity prior to making an EBay purchase.
Fines – Fines, including parking tickets on and off campus, are not allowable.
Flowers/decorative items – Allowable when such items are placed in a general reception area frequented by students and/or the general public. The purchase of items placed in employee lounges, assigned offices, or other work areas are not allowable. Purchases made for official functions are allowable in accordance with SYS 312, Official Functions.
Gasoline/fuel – Allowable only when used in conjunction with car rental. All other gasoline/fuel, including gasoline/fuel for lawnmowers and other off-road units, must be obtained from a campus fueling station, if available, or purchased using a WEX fuel card.
Gift Cards – Allowable only when used for prizes or awards in amounts of $50 or less, unless provided to research subjects, then allowable up to the amounts provided in related grant agreements. Gift cards may not be awarded to employees or Non-Resident Aliens and cannot be used for the payment of services or other tax reportable transactions. Prior to purchasing gift cards, a Gift Card Approval Form must be completed and signed by the cardholder’s business office (see Appendix J). The name and contact information of each gift card recipient should be documented on a Gift Card Recipient Log (see Appendix K).
Gratuity – Gratuity within reason for a Headquarters’ City conference or event is acceptable on the card if the majority of attendees are not UW employees. If the event consists of mainly UW employees, the gratuity must fall within the individual meal limits.
Greeting Cards – Greeting cards are not allowable unless the purchases are made for official functions, which are allowable in accordance with SYS 312.
High-risk Merchant Category Codes – Refer to Appendix D, section 115C for the list of merchant category codes which are blocked on the purchasing card and therefore not allowable.
Hospitality/food/entertainment – Individual meals are strictly prohibited. Hospitality/food/entertainment provided during an event that meets the Headquarters’ City and UW-Sponsored Events requirements are allowable. Refer to UW System Headquarters City and UW-Sponsored Events policy for complete guidelines. Purchases made for official functions are allowable in accordance with SYS 312, Official Functions.
Ineligible Vendors – The use of an ineligible vendor is not allowable. The eligibility to do business with vendors is contingent on them satisfying or not satisfying s. 16.765, Wis. Stats., which imposes certain requirements for affirmative action in employment as well as compliance with s. 77.66, Wis. Stats., tax laws. Prior to completing a purchase, check the current Wisconsin Office of Contract Compliance Ineligible Vendor List*, as well as the Certification for Collection of Sales and Use Tax Ineligible Vendor Directory that lists vendors determined to be ineligible by the Wisconsin Department of Revenue for non-compliance with tax laws.
Insurance – Not allowable, all insurance must be processed through Risk Management.
Leases/rentals – Allowable only when processed on a requisition or direct charge to allow for appropriate approvals. Recurring automatic payments are not allowed; however, once the invoice has been reviewed and approved, the purchasing card can be used as a mechanism for payment provided the transaction is coded or reallocated to appropriate class code to allow for proper generally accepted accounting principles (GAAP) reporting.
Meals – See Hospitality/food/entertainment
Motor vehicles – Allowable for car rental in conjunction with business-related travel. Purchases of motor vehicles are not allowable due to the extensive procurement policies and procedures and related approvals and reporting.
Non-business/personal items/services – Strictly Prohibited.
Parking – Allowable only for expenses as detailed in the Miscellaneous Travel Expenses section of the UW System Administrative Policy 430 (formerly 1205 (ANS)), Travel & Expense – Purchase & Payment Miscellaneous Travel Expenses. Non-employee/guest campus parking passes may be purchased on the card.
Printing – Allowable for printing under $50.00 and as a payment mechanism for printing over $49.99 ordered through an established contract or a competitive bid for custom printed materials, quick copy/duplicating, photocopying, and direct digital printing.
Radioactive materials – Allowable when purchased by appropriate department, i.e., research laboratories, and when all procurement policies and procedures are followed.
Recurring payments – Recurring payments set up on an automatic payment cycle are not allowable; however, once the invoice has been reviewed and approved, the purchasing card can be used as a mechanism for payment provided the transaction is coded or reallocated to appropriate class code to allow for proper generally accepted accounting principles (GAAP) reporting.
Registrations, subscriptions, and membership renewals – Allowable (excluding Amazon Prime) provided the initial membership fee is processed on a requisition or direct charge to allow for appropriate approvals. Once membership is approved as a valid UW charge, subsequent renewal payments may be processed on the card.
Stamps – Postage stamps may be purchased with the purchasing card.
Statewide Contracts – Allowable except when specific contract prohibits the use of the purchasing card.
Supplies – Allowable except when specific contract prohibits the use of the purchasing card.
Tobacco – Allowable only when purchased for an activity related to an official function in accordance with SYS 312, Official Functions. For example, offering tobacco for Indigenous ceremonial practices is a respectful way of asking for assistance for a song, an opening prayer, a teaching, Indigenous knowledge, or for advice.
Travel – Refer to SYS 351.A, Purchasing Card Procedures, Section 4.C.V.