Frequently Questioned Purchases
To comply with various policies, statutes, and regulations, departments must obtain prior approval when purchasing certain products and/or services. Please see Purchasing Services' Special Approvals List (PPP4).
Alcohol
Alcohol is only allowable when purchased for resale or when hosting a conference dinner. The complete guidelines for alcohol purchases can be found in the memo, Agency Account Usage and Payments for Alcoholic Beverages.
Appliances
Appliances (including refrigerators, microwaves, coffee makers, toasters, egg poachers, etc.) purchased for personal use by UW faculty and staff members are not allowable on the purchasing card. All break room appliances must be purchased with personal funds. Appliances purchased for reception areas open to the general public are allowable on the card.
Awards
Awards are something of value conveyed as a result of competition, merit, or in recognition of service to the institution on the part of the recipient. Examples include awards to recognize student achievements, service awards to recognize members of the community, and non‑cash awards to recognize employees for distinguished service upon retirement or career milestones. Awards to employees cannot exceed $100.00. The use of gift funds is preferred for all award purchases. GPR funds may be used only for awards such as certificates and plaques that have no intrinsic value or a minimal value if the item bears the University logo. No cash awards are allowed. Awards meeting the above definition are allowable on the purchasing card.
Capital Equipment Purchases
Capital Equipment and capital equipment components must be purchased on a requisition so the information can be captured and sent to Property Control. Failure to follow the proper procedures compromises the integrity of the Capital Equipment tracking system. If the cardholder has delegated purchasing authority, the purchase is allowed, however, the cardholder must follow the reporting procedure at: http://www.bussvc.wisc.edu/acct/propcont/prophome.html
Catering
The decision to have food at a UW event, either on or off campus, presents a number of concerns including the safe and proper handling of the food, adequate insurance coverage and business procedures that meet the purchasing and accounting processing requirements. The University has established written policies that must be followed when catering food. The guidelines can be found at the following website address, http://www.bussvc.wisc.edu/purch/ppp10.html.
If the outlined requirements are met, the catering may be paid with a purchasing card. All of the required documentation, including a copy of the vendor’s current insurance certificate that has been approved by Risk Management, must be attached to the cardholder log.
Cell Phones
US Cellular is the mandatory contract vendor for cell phone services. US Cellular orders and payments are handled by DoIT and are therefore not allowable on the card.
Special requests for services not offered by US Cellular must be submitted in writing, along with a letter of justification, to Crescent Kringle in Purchasing Services. Purchasing Services will review the requests and forward them on to DoIT for approval. If upon review DoIT finds the service to be justifiable and unavailable through US Cellular, the request will be approved and at that time the charges may be billed to a purchasing card. A copy of the approval must be attached to the purchasing card log.
Copiers
The state contract for copy machines is a mandatory contract. All copying needs are to be addressed through the contract vendor regardless of the unit price and whether or not it is a used piece of equipment.
Fines
Fines, including parking tickets on and off campus, are not payable on the card.
Flowers/Decorative Items
The purchase of decorative items (plants, paintings, flowers, etc.) from University-administered funds is allowable only if the items are placed in a general reception area frequented by students and/or the general public. Additionally, decorative items may be purchased for an event if the participant’s fees cover payment for the items. The purchase of items placed in employee lounges, assigned offices or other work areas are not allowable on the card.
The purchase of holiday decorations from University-administered funds is allowable only if the decorations are placed in open public areas, such as a student union, student dormitory, student health center or an educational conference center such as UW Extension facilities.
Food Purchases
Individual meals are not payable on the card. Events that meet the “Headquarters’ City” requirements are payable on the card. To correctly handle expenses associated with a conference or event, the appropriate event form is to be completed and attached to the log/statement. All policy requirements are addressed within the form for your convenience. For further information see Events/Food.
Fuels
External reporting requirements do not allow for the purchase of gasoline on the card; however, gasoline for a rental vehicle is acceptable. The card cannot be used for car fleet fuel purchases. The Voyager Card is provided for that purpose. Fuel purchases for personal vehicles used in lieu of fleet vehicles are included in the established mileage reimbursement rate and as a result are not payable on the card.
Gifts
Gifts are a voluntary conveyance of something of value as a gesture of goodwill or appreciation. Gifts from program revenue sources may be given in the following circumstances: 1) to distinguished visitors to campus; 2) to foreign nationals when University personnel are visiting other countries and gifts are necessary, customary and reasonable in cost; or, 3) to recognize contributions of time or funding support by members of the public. Gifts meeting the above criteria are allowable on the card. Gifts of any kind, to an employee, are not allowable on the card.
Gift Cards
PURCHASING GIFT CARDS AND GIFT CERTIFICATES AS PRIZES AND AWARDS (Account Code 3750)
The purchase and use of negotiable items, such as gift cards or gift certificates, require strict accountability and are to be used for prizes and awards only. Gift cards are not to be awarded to employees or Nonresident Aliens and cannot be used for the payment of services or other tax reportable transactions. Examples of appropriate gift purchases include an incentive for students to complete a survey or sell the largest number of tickets to an event.
If buying gift cards for human subjects, see Policy:103-Payments to Human Subjects and 301-Custodian Funds Procedures.
The IRS considers gift cards and gift certificates to be cash equivalents, therefore control measures must be in place at the Dean’s Office level to ensure proper use and departmental accountability. The Gift Card Approval Form must be signed by the respective Dean’s Office prior to the gift card purchase. In signing off on the form, the Dean’s Office will review and ensure the following:
- Participants are not frequent gift card recipients, minimizing the risk of non-compliance with IRS tax reporting regulations. Multiple gift cards should not be given to the same individual during a calendar year.
- The individual making the gift card purchase is accountable for the safekeeping and appropriate documentation of the cards, including the distribution to the recipients.
- Gift cards purchases are restricted to the purchasing card single transaction limit in amounts of $25.00 or less per individual gift card.
- Unused Gift Card will be accounted for.
- Academic based gift cards impact a student’s financial aid, therefore cards purchased are not to be distributed for that purpose. For further information see Accounting Services Policies and Procedures 101.A Departmental Scholarship Authorization.
Purchases on Grant money must be pre-approved by Research and Sponsored Programs prior to submitting the form into the Dean’s Office for final approval. The Gift Card Recipient Log is to be used to document the name and contact information of each recipient. All card documentation must be attached to the Purchasing Card Statement of Account Report that reflects the gift card purchase.
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 of any nature are not allowable on the card.
Hospitality Expenses
Hospitality type purchases such as greeting cards or graduation expenses are not allowed on the Purchasing Card. Any expense that is to be paid in full or part with Foundation Money cannot be processed on the Purchasing Card. These types of expenses should be process on the Personal Liability My Corporate Card and reimbursement can be requested via e-Reimbursement System.
Ineligible Vendors
A vendor’s eligibility to do business with the University is contingent upon their compliance with s.16.765, Wis. Stats., which imposes requirements for affirmative action employment. Each vendor must also comply with s.77.66, Wis. Stats., tax laws. Purchasing Card Program Staff will update the Ineligible Vendor Lists quarterly and send the updated list to all campus Site Managers. Cardholders should either reference our website or contact their site manager for the most current Ineligible Vendor Lists.
- Affirmative Action Ineligible Vendor List
- Certification for Collection of Sales and Use Tax Ineligible Vendor Directory
Insurance
Insurance is not an acceptable Purchasing Card purchase. All insurance must be processed through Risk Management.
Student Health Insurance Plans (SHIP) are not payable on the Purchasing Card. Consult the University Health Services or SHIP website for further information.
Meals
Individual meals are not allowable on the standard purchasing card nor are they allowable on a purchasing card that has been approved for travel. The individual must personally pay for all meals and request reimbursement in e-Reimbursement.
Memberships
The initial payment of a membership is not payable on the card. The initial membership payment must be submitted on a Direct Payment and routed through the Dean’s Office to obtain Division approval. Subsequent payments, after the initial payment, can be made on the card.
Online Auction 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 an online auction site, cardholders 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 be used to validate the operating condition. Cardholders are encouraged to contact the Purchasing Agent that handles the particular commodity prior to making an online auction purchase.
Parking
Parking costs incurred outside of the individual’s headquarters city are allowed on the Purchasing Card. Parking costs incurred within the individual’s headquarters city or at the individual’s permanent work site are NOT allowed on the Purchasing Card.
Note: Parking costs incurred at the airport within the individual’s headquarters city are allowed.
Printing
Printing under $49.99 is allowable on the card. Printing over $49.99 must be ordered through the UW Madison Division of Information Technology Printing Services through an established contract or a competitive bid for custom printed materials, quick copy/duplicating, photocopying and direct digital printing. Faculty and staff are NOT authorized to directly purchase printing over $49.99 from outside vendors.
DoIT Printing Services will purchase all printing for UW-Madison offices, except offices with limited delegation authority such as University Publications Office and UW Press. For further information on DoIT Printing Services, visit their website at http://www.doit.wisc.edu/printing/.
Prizes
Prizes are something of value conveyed as a result of chance, generally for promotional purposes, to one or more participants in a University sponsored event. Prizes may only be awarded in situations where benefits are expected to accrue to the University. Examples include door prizes to encourage attendance at an event or prizes as an incentive to encourage responses to questionnaires or surveys. The value of the prize must be reasonable and appropriate based on the minimum amount required to achieve the objective and cannot exceed $200.00. Prizes cannot be awarded to employees unless the basis for awarding the prize has nothing to do with the recipient’s employment. Prizes meeting the above definition are allowable on the card if approved by the respective Dean’s Office. The anticipated benefits of awarding the prize must be documented and attached to the Statement of Account Report. Cash prizes are not allowable on the purchasing card.
Registrations and Subscriptions
Registrations and subscriptions are allowable on the card.
Services
Tax reportable purchases, including services, are payable on the Purchasing Card. Payment settlement entities are required to report on all taxable credit card transactions. For further details, please see the IRS website Third Party Reporting Information Center - Information Documents which contains the Final Regulations and FAQs on New Payment Card Reporting Requirements.
Prior to commencing service work on campus, the vendor must have a valid insurance certificate on file in the Risk Management Office. Cardholders should use the insurance certificate tool at http://riskinfo.bussvc.wisc.edu/Certs/Certs_Main_Menu.aspx to check for vendor certification and if the transaction is over $5000 contact Purchasing Services for contracting assistance.
Stamps
Postage stamps may be purchased with the card.
Supplies
Campus is encouraged to use Shop@UW when purchasing supplies that are carried by a prime vendor. Ordering through Shop@UW ensures the state contract prices. For all other supply orders under $5,000 the card is considered to be the “best practice” purchasing method.
Tax Reportable Payments
Tax reportable purchases, including services, are payable on the Purchasing Card. Payment settlement entities are required to report on all taxable credit card transactions. For further details, please see the IRS website Third Party Reporting Information Center - Information Documents which contains the Final Regulations and FAQs on New Payment Card Reporting Requirements.
Prior to commencing service work on campus, the vendor must have a valid insurance certificate on file in the Risk Management Office. Cardholders should use the insurance certificate tool at http://riskinfo.bussvc.wisc.edu/Certs/Certs_Main_Menu.aspx to check for vendor certification and if the transaction is over $5000 contact Purchasing Services for contracting assistance.
Travel
The Department of Administration has approved the use of the Purchasing Card for three travel related expenses: airfare, hotels and state contract car rental. Individual meals are not allowable on the card. Approval to use a card for travel related expenses is granted by the respective Dean’s Office on an individual basis. Once a cardholder is given permission to use the card for travel, a Travel Agreement Form must be completed and signed by the Department and Dean’s Office representatives and sent to the Purchasing Card Manager for processing. The cardholder and Site Manager are then required to attend a travel training session that covers the travel restrictions and documentation requirements.