EXPENSES

Faculty/Staff Purchasing Cards

The PCard is the University’s preferred method for purchasing and paying for goods and services costing less than $5,000 and for travel, business meeting, and entertainment expenses. General purchases $5,000 or more cannot be purchased with the PCard and must be purchased through Procurement in iO.

Rice University paid faculty and staff responsible for making purchases on the University’s behalf are eligible for a PCard. Two types of PCards are available.

Individual PCard

The Individual PCard is a corporate liability card issued in an employee’s name. This is a benefit to the employee as Rice directly makes payment to the card issuer eliminating the need for an employee to use their personal card and then seek reimbursement.

Individual Faculty/Staff Application

Department PCard

The Department PCard is issued under a department's name and assigned to a designated custodian responsible for its management. This custodian uses the card to make purchases on behalf of the department. Additionally, the custodian may temporarily issue the card to employees or students who need to make approved purchases. In such cases, the custodian is expected to maintain a checkout log to track usage and reconcile all card transactions.

Always consult with your department approver before submitting a request for a Department PCard.

Department PCard Application

Cash Due Rice Process Overview

This process applies to PCard transactions that in most cases were personal in nature and so require reimbursement of funds to Rice University. Employees, Cost Center Managers, and ultimately departments are responsible for promptly monitoring and reconciling Cash Due Rice transactions to support accurate and timely financial reporting.

To view the step guide PDF for Cash Due to Rice, please visit Cash Due Rice iO Step Guide.

Employee Responsibility:

Update the PCard expense type to expense type Cash Due Rice.
Itemize the PCard transaction.
- PCard - Business represents the amount of the charge, if any, related to Rice.
- PCard - Personal represents the amount of the charge that must be reimbursed back to Rice; this might be the only type of itemization required.
- Do not change the account string for PCard – Personal itemization.
Once the expense report containing the Cash Due Rice item(s) is approved through audit, the cardholder will receive an email from expenses@rice.edu with instructions detailing how to reimburse Rice (online payment or cash payment at Bursar’s Office).
Once the cardholder makes a payment to reimburse Rice for a Cash Due Rice transaction, the payment will be reconciled against the Chart of Account (COA) provided on the expense report and no further action is required.

Department Responsibility:

If an employee does not timely reimburse Rice for Cash Due Rice transactions, the Expenses team notifies the department’s Cost Center Manager, and the process continues as follows:

By the last business day of each month, the Expenses Team conducts an annual review of all unreconciled Cash Due Rice transactions outstanding over 30 days and distributes a report to each department Cost Center Manager as needed which details the department’s unresolved Cash Due Rice transactions.
The Department will have the calendar month following this notice to ensure and confirm that payment has been made to Rice. If payment has not been made within the calendar month, the following will occur:
- The outstanding transactions will be charged to the Department (debit Account 8345 Miscellaneous and credit Account 3111 Cash Due Rice.)
- The transaction amount will be imputed as taxable income to the employee. If payment is received in the same calendar year, this imputed income will be reversed.
- The employee’s PCard will be suspended until reimbursement is received.
If employee payment is eventually received after this reallocation, the Expenses team will notify the department of the receipt, and the department will be responsible for initiating and processing the necessary cost transfers to further reallocate the transaction.

Accountable Plan

Rice University Policy states that expenses should be submitted within 30 days of being incurred.

In accordance with IRS Publication 463, Rice University follows the IRS rules for an accountable plan to ensure business expenses are not treated as taxable income to employees.

Per the IRS, employees must reconcile and submit their expense transactions within 60 days of incurring the expense. Pcard transactions which are submitted after 60 days are considered taxable income and are subject to tax withholding. Timely reconciliation of expense transactions is the responsibility of the employee, whether self-submitted or submitted by a delegate.

Under an IRS accountable plan, your expense is only nontaxable to you if it meets all of these requirements:

Your expense has a business connection.
You adequately account for an expense within 60 days after it was incurred.
You return any excess reimbursement to your employer within a reasonable time (typically 120 days).

Imputed Income

What is Imputed Income?

If Pcard expense transactions are not reconciled within 60 days, the IRS views these late expense transactions as a “benefit” that an employee receives. The amount of the “benefit” is considered taxable income, subject to tax withholding and reported on your;Form W-2. Your net pay in the appropriate pay period will be reduced by the tax withholding related to the “benefit.”

For example, if you have a $1,000 plane ticket for a trip that ended June 30, but don’t reconcile and submit it until November 30, tax withholding will be deducted from your December 15 pay and you will show an additional $1,000 on your W-2 income at year-end.

How Do I Avoid Imputed Income?

You should reconcile and submit Pcard transactions within 30 days of incurrence per Rice University policy. To avoid imputed income, Pcard transactions must be submitted no later than 60 days of incurrence. If a report is returned and not resubmitted within this window, it will be subject to imputed income. Employees are encouraged to reconcile their transactions well before 60 days to allow time for review and approval.

When were my expenses incurred?

PCard expenses (non-travel): incurred when the expense is charged to the card.
Pcard expenses (travel): incurred upon the completion of the trip.

Exceptions

What Happens If I Miss the Deadline?

If PCard transactions are not reconciled and submitted by the deadline provided upon card suspension, the late transaction amount will be imputed as income.

Are there any Exceptions?

Exceptions are limited to documented, unavoidable circumstances, not including administrative oversight. Unavoidable circumstances include unexpected leaves of absence or documented delays in grant of external funding.

Exception Request Process: Written justification is required and must be approved by the Dean/VP or equivalent and Controller’s Office (Expenses Team). Attach the Exception Request Form to your late expense report upon submission.

Note: Please attach approval documentation to the expense report PRIOR to report approval. Once income has been imputed, it is non-reversible.

Frequently Asked Questions

Can I still submit expense reports after 60 days?

Yes, you are still required to submit your PCard charges; however, expenses reconciled or requested for reimbursement submitted 60 days after the expense was incurred will be treated as taxable income and reported on your W-2 and subject to tax withholding.

Do I have to submit within 60 business days or within 60 calendar days?

60 calendar days.

Will I receive reminders before this 60-day deadline?

Reminders are sent every other week via the 30-day notification email. Cardholders receive a warning for expenses outstanding. If the PCard is suspended, submit expenses to avoid imputed income.

Can I track my submission date?

Employees can view real-time updates in the expense dashboard (Expense Report Approval Status) or by selecting ‘View Report History’ within their expense report in the Expense module.

Is there training for staff on this policy?

Yes. Please click here to enroll in the PCard Training or the Expenses Training.

Does this policy apply to the student PCard program?

No.

What if my report is selected for audit and returned for corrections?

Typical audit review occurs within 5 business days. ONLY expenses which require correction will be returned. These expenses must be corrected and re-submitted within the 60-day limit.

Example: An expense report in audit has 20 transactions. Only one transaction requires correction and is returned for correction and resubmission. The remaining 19 transactions will be approved. If the corrected transaction is not resubmitted within the 60-day window, it will be imputed as income.

What if my expense report is stuck in pending manager approval status?

If your report is pending approval for an extended period, follow up with the report approvers to ensure timely approval.

What should approvers do to avoid issues?

Approve reports in a timely manner, delegate when out of office, and communicate required corrections immediately.

What if my expense is disputed?

Disputed PCard transactions must be disputed as soon as possible. If it appears that the dispute will push approval beyond 60 days, contact expenses@rice.edu before the 60-day window.

What if my expense is awaiting a refund?

Submit the expense report without the refund/credit and note that a refund is expected. When the refund/credit is received, use the same expense type and GL account as the original submission.

How do I apply for an exception?

Complete the Exception Request Form. Once the Exception Request Form has been approved by the Dean/VP, send to expenses@rice.edu for Controller’s Office Approval. Then attach the form within the expense report prior to report submission.

What is the submission requirement for Human Subjects expenses?

Expenses must be submitted within 60 days of fund disbursement. The Exception Approval Form is not required.

What if I am on leave?

Being on leave does not exempt you from compliance with IRS regulations. Work with your department to submit expenses within 60 days. If unexpected leave prevents timely submission, request a policy exception as discussed above.

Does this policy affect guest or student expense reimbursements?

No.

When will I be notified of the imputed income? How will I know the amount?

You will receive an email from expenses@rice.edu with the total amount and related expense report number. Payroll will provide confirmation once the income has been imputed.

When will the imputed income impact my pay?

It depends, but typically the amount will be reported and reflected in your pay within one to two pay periods after the notification.

Will this affect my benefits?

No.

Who do I contact for questions?

For questions regarding income which has been imputed, contact payroll@rice.edu. For expense policy/procedures, or inquiries regarding pending transactions, contact expenses@rice.edu.

How do I obtain a purchasing card?

PCard applications are now submitted online! Find the Digital PCard Application and Cardholder Agreement in the Forms section at controller.rice.edu/facultystaff-purchasing-cards. Once submitted, the application goes to the selected department approver. Once approved, the cardholder will receive training instructions from the Expenses Team. After the training is complete and the cardholder agreement is sent to pcards@rice.edu, the application will be processed. PCards are sent to the cardholder via Campus Mailstop.

What are my responsibilities as a cardholder?

The card is issued to an individual. Approval from your supervisor or department chair/head is necessary before you may receive a PCard. Only paid employees of Rice University are eligible to receive a PCard and each user is required to attend training and sign a Cardholder Agreement.

Although the PCard has NO impact on an employee's personal credit history, please remember that when using the card University funds are being committed. This is a responsibility that should not be taken lightly. The cardholder is responsible for all charges made to the card(s) in their possession. Intentional misuse or abuse will result in disciplinary action, up to and including discharge from the university.

The PCard will work in the same way as any other credit card with the exception that the Rice Card should NEVER be used for personal charges or restricted items.

Restricted Items are as follows:

General Purchases equal to or greater than $5000 (does not apply to travel and entertainment charges)
Rice University Internal Vendors (Rice Catering, the Thresher, Rice Parking, etc.)
Cash Advances (e.g. ATM's)
Traveler's Checks
Hazardous Materials or Controlled Substances
Relocation Expenses (due to tax reporting requirements)
Non-Incorporated vendors and consultants (due to tax reporting requirements)
Any others as dictated by the University. See the Rice University Policies and Procedures on the Procurement Guidelines and Procedures page.

What do I do if my Purchasing Card is lost or stolen?

Immediately notify:

JPMorgan Chase at 1-800-316-6056 (open 24 hours/day; 365 days/year),
Rice University Police (ext. 6000), AND
Purchasing Card Administrator (ext. 6708).

NOTE: If the Cardholder has a card stolen or notices that the card is missing outside of normal business hours, he/she should contact the Rice Police (ext. 6000) immediately. The Police Department is open 24 hours a day and can supply the Cardholder with the JPMorgan Chase phone number. Notify the Purchasing Card Administrator on the following business day.

Rice is responsible for all charges on the card until JPMorgan Chase is notified of the loss or theft of the card by the Cardholder. Once JPMorgan Chase is notified, the card will automatically be suspended and a new card will be sent to the Purchasing Card Administrator for distribution to the Cardholder.

What Chart of Account will my Purchasing Card purchases default to?

Purchasing Card transactions automatically default to the cardholder’s home Chart of Account in IO. The cardholder’s HCM initiator can make any updates/corrections to the cardholder’s default Chart of Account.

How do I find out my PCard billing address or PCard limits?

Please contact pcards@rice.edu for any requests/inquiries regarding PCard limits or information.

How can I increase my purchasing card limits?

Approval from your supervisor or department chair/head is necessary for any PCard limit changes. This approval must be sent to pcards@rice.edu. Once the limit increase is approved, the cardholder will receive an email when the temporary or permanent limit increase is effective.

My Purchasing Card was declined. What should I do?

First, call JPMorgan Chase at 800-316-6056 x 0. (This number is on the back of your card.) The bank can tell you why the charge was declined.

Your card may have been declined because the wrong expiration date was used, the wrong billing address was used or the card limit(s) were reached. Every card is customized by the department to allow for:

General Purchasing only
Travel and Entertainment only
Both General Purchasing and Travel and Entertainment
A limit on how much can be spent per purchase (single purchase limit)
A limit on how much can be spent per monthly cycle (cycle purchase limit)
A limit on how many daily transactions can be made (daily transaction limit)
A limit on how many transactions per monthly cycle can be made (cycle transaction limit)

If your card is declined because you have exceeded your limit and you believe the limits should be changed, talk to your supervisor or department chair/head. The approver may email pcards@rice.edu to request a temporary or permanent increase to any of the purchase or transaction limits. The Purchasing Card Change Form may also be completed and sent to pcards@rice.edu. Contact the PCard Staff with any questions.

What do I do if tax was charged on my Purchasing Card transaction?

Rice University is tax-exempt and should not be charged sales tax for University purchases made in the State of Texas. Rice's Federal Tax Identification number is printed on the PCard for easy reference. The vendor may require the Texas Sales and Use Tax Exemption Certification. Other Rice purchases (in addition to PCard purchases) are also tax exempt following these same guidelines.

If a vendor charges tax on your Purchasing Card order, you should contact the vendor directly and have the vendor issue a "credit" to your card for the amount of the tax charged. Submit the original charge and the tax refund on the same expense report.

What should I do if my Purchasing Card is charged more than once for the same order?

Your first point of contact should be directly with the vendor. If the charge is not legitimate, the vendor should credit your account. If they cannot provide documentation which supports the charge and are unwilling to credit your account, you should file a dispute with JPMorgan Chase (1-800-316-6056, ext. 0) and contact the Purchasing Card Staff at pcards@rice.edu. Disputes must be filed within 60 days of the charge or Rice may not be able to dispute the charge.

What should I do if I notice a fraudulent charge on my Purchasing Card?

For PCard charges that cannot be resolved directly with the vendor or for any charges appearing that do not belong to the Cardholder, the Cardholder should contact a JPMorgan Chase Service Representative at (800) 316-6056. They will open a Dispute Case for the transaction in question.

Contact must be made with JPMorgan Chase within 60 days of the transaction date in order to be disputed.
During the investigation, a temporary credit will be issued to the Cardholder’s account for the amount questioned.
Upon completion of the investigation, the bank will notify the Cardholder of the resolution or credit the account.
If the dispute is not settled in the Cardholder’s favor, the Cardholder’s account may be charged for the disputed amount.

What should I do if I accidentally made a personal purchase with the Purchasing Card?

Submit the purchasing card transaction with expense type Cash Due Rice. Itemize the amount to be returned to Rice as Personal. Once the expense has been approved through audit, the cardholder will receive an email from expenses@rice.edu with instructions for the deposit. For additional assistance, select Cash Due Rice in the OGL widget.

Who can I contact if I need assistance with my PCard?

Contact pcards@rice.edu for assistance.

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