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PCard Audit


As a cardholder at the University of Utah, you are subject to University State, and Federal audits at any time. Your department’s PCards are audited periodically by the PCard Department.

Why PCards are Audited

To ensure cardholders are following 3-1010 Expenditure of University Funds & Personal Reimbursements which mentions that purchases should be:

• Reasonable in amount
• Necessary to a legitimate business purpose
• Appropriate for the circumstances

Preparing for An Audit

The best time to prepare for a pcard audit is – now. If documentation is maintained and reviewed on a
regular basis, it will be much easier for cardholders to remember important information will be needed.
PCard documentation required includes the following:

  1. Proof of Purchase – Receipts
  2. Clear Business Purpose/Description
  3. Additional information may be needed - including approval if purchases require additional documentation based on university regulations
  4. PCard statements that show the cardholder & account executive signed within the 30-day requirement

Proof of Purchase - Receipts

Business Purpose/Description

Cardholders should ensure that the business purpose of the purchase is clearly understood by anyone looking at the receipts. Avoid using abbreviations or unclear acronyms.

The business description is your way of showing WHY the items were purchased – not WHAT was purchased – since the receipts already have that information.

 

Example #1:

INVALID
INVALID
Receipt shows a chair was purchased. The description says:
“Office”
BEST
BEST
Receipt shows a chair was purchased. The description says:
"Chair purchased for [employee name]’s office to replace broken chair."

Example #2:

INVALID
INVALID
“Business license renewal”
ACCEPTABLE
ACCEPTABLE
“Business license renewal for [EMPLOYEE NAME]
BEST
BEST
“Business license renewal for [EMPLOYEE NAME] for [ORGANIZATION NAME} which is required for them to practice in the State of Utah.

Additional Information

Additional information may be required depending upon the type of purchase.

Meal or Food Purchases
The University and IRS require that supporting documentation includes:

The pcard should also have the business meal exemption.
Approvals or Specific Documentation Needed
Some purchases require additional approvals or specific documentation.

To see what may be required, see the PCard Handbook Restricted Items List and any applicable University Regulations.
Gift Cards
Cardholders must have a gift exemption with the PCard Office to purchase gift cards. Visit Gift Card Purchases to learn more about important policies, procedures, approvals needed, and required documentation.

PCard Statement Review

Each month, PCard statements are emailed to the primary reallocator. Reallocators should ensure that the statement is given to both the cardholder and the account executive to sign. Visit the Reallocator Page to learn more.

The statement must have two signatures – including the date that they signed. University approved electronic signatures are also accepted (See Policy 4-006) like DocuSign or Adobe Sign. The statement must be signed within 30 days of when statements are made available (the next day after the 5th business day of the month).

PCard Audit Schedule/Process

After making a few changes to the PCard Audit process, we wanted to make cardholders aware of the following:

  1. Currently, the PCard audit is 100% virtual and departments will be asked to upload supporting documentation into a UBox folder that the PCard Office will provide at the time of audit
  2. To ensure documentation is being properly maintained, we recommend units be ready for their audit – at any time
  3. Previously scheduled audit dates may be delayed due to accommodate changes in the new process – and we appreciate your patience
  4. Feel free to contact the PCard Office to find out when your next audit is on the schedule or with any questions