Establishing secure connection…Loading editor…Preparing document…

Small Purchase Charge Card Program Policy and Procedure

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE APPLICATION FOR SMALL PURCHASE CHARGE CARD (SPCC)

Date entered into BOA system:

Agency Name/Number: Date:

Name: Date of Birth:

Department: E-mail address:

Dept. mailing address: Emp. Work Phone:

Dept. Fax Number: Employee Banner ID:

University Index Number:

(Index number cannot be a grant account number.)

Applicant is an employee of William & Mary/VIMS.

I hereby certify that I have examined this employee’s duties and estimate that the purchasing card will be used based on the following spending analysis and within the ranges indicated below.

Total Estimated Spend Range per Month:

$1-$1,000

$1,000- $5,000

$5,000- $10,000

$10,000- $20,000

$20,000+

Highest Single Transaction Amount Range per Month:

$1-$1,000

$1,000- $2,000

$2,000- $3,000

$3,000- $4,000

$4,000- $5,000

NOTE: Limits chosen are subject to Program Administrator's review and approval and are not to exceed $5,000 per transaction; $100,000 per month

By signing below as the Approver, I acknowledge responsibility for the cardholder’s use of the card, reviewing in Works (reconciliation reports, receipts, and other supporting documents) and approving the cardholder’s transactions by the 23rd of the month in which the cycle closes, to ensure each transaction is a valid business purchase and adheres to all of the University’s procurement policies and procedures. I further agree to examine the cardholder’s activity and usage annually in collaboration with Procurement regarding limit changes.

Approver’s Signature: Date:

Approver Name: Approver e-mail:

Supervisor's Signature:

Approved by Program Administrator:

Date entered into BOA system:

Laken Marley (or designee)

Cardholder Agreement and Acknowledgment of Receipt of Card (Part 2 of 2)

As a Cardholder, I agree to comply with the following terms and conditions regarding my use of the Card:

1. I will not exceed the transaction and monthly limits assigned to my card or use the SPCC to circumvent established purchasing procedures. I will strive to obtain the best value for the University and will not make excessive or unnecessary purchases with my Card, as the University is liable for all of my expenditures. I will use the Card for approved purchases only, and I will not make personal purchases on the card under any circumstances. I understand that the University audits the use of the Card and will take appropriate action when improper uses are found.

2. I agree to not share my Card or Card number with anyone other than a vendor I am doing business with. I agree if I share my Card or Card number to anyone other than a vendor I am doing business with, my agency will take disciplinary action as a result. I will only make purchases on the internet using a Secure Socket Layer (SSL).

3. I agree to use this Card for approved purchases only and agree not to charge personal purchases at any time. I understand that my agency will review the use of this Card and the related management reports and take appropriate action based on any discrepancies.

4. I will follow the established procedures for SPCC use and abide by the Code of Virginia’s State and Local Government Conflict of Interests Act and the University’s policy on Conflict of Interest. I understand that in order to properly purchase goods and services, I must use eVA for those purchases that qualify. Failure to do so may result in either revocation of my privileges or other disciplinary actions, up to and including termination of employment.

5. I agree to return the Card immediately upon request or upon termination of employment (including retirement). If the Card is lost or stolen, I agree to notify Bank of America and the Agency Program Administrator immediately.

6. When returning merchandise, I will specifically request that the charge be credited to the Purchasing Card. I will not accept “store credit,” and I will notify the Purchasing Card Administrator if a merchant refuses to credit the Card for returned items.

7. I agree to successfully complete annual Cardholder training as well as sign a new employee agreement at each card renewal period.

8. I agree not to write down or share my Card’s PIN number with anyone, including my Agency Program Administrator or Bank of America. I understand that Chip and PIN technology is only utilized at point of sale by vendors who have chip enabled terminals.

Cardholder’s Name:

Cardholder’s Signature:

Date:

To be completed when new card is issued:

I have read and understand the University’s Small Purchase Charge Card Policies & Procedures.

Date of Training: Card Limits Authorized: $ per transaction; $ per month

I, , acknowledge receipt of a Bank of America SPCC.

Cardholder Signature:

Enter text✕
Prepare your document for signing right on this page
  • 01 Edit the text and complete the fields
  • 02 Click Sign Now and on the next screen add recipients and signature fields in SignNow
  • 03 Start your free trial to sign and send your doc
Sign Now

What the Small Purchase Charge Card Program Policy and Procedure Is

The Small Purchase Charge Card Program Policy and Procedure establishes the rules, approvals, and controls for using government or organizational charge cards to acquire low‑value goods and services. It defines cardholder eligibility, authorized purchase types, single‑transaction and monthly dollar limits, documentation and receipt requirements, reconciliation and audit processes, and disciplinary measures for misuse. The policy aligns procurement convenience with internal control objectives, reduces purchase order volume, and provides a consistent process for approvals, recordkeeping, and post‑purchase review to support compliance with federal and organizational financial management requirements.

Why a Formal Policy Matters for Small Purchases

A clear Small Purchase Charge Card Program Policy and Procedure reduces improper spending, clarifies approvals and limits, and streamlines low‑dollar purchases while preserving internal controls. It supports audit readiness, enforces accountability, and helps operational staff complete routine acquisitions with documented authorization and timely reconciliation.

Why a Formal Policy Matters for Small Purchases

Who Participates and What Each Role Does

Typical users include procurement staff, cardholders, supervisors, and finance teams responsible for low‑dollar purchasing oversight.

  • Cardholders: employees authorized to make small purchases within established single‑transaction and monthly limits.
  • Supervisors: approvers who validate purchases, receipts, and reconcile charges against budgets and policies.
  • Finance/Accounts Payable: staff who review statements, process disputes, and maintain audit trails for reconciliations.

Roles should be documented in the policy with delegation, approval limits, and training requirements for each role.

Primary Program Contacts and Responsibilities

Procurement Manager

Oversees program governance, sets approval thresholds, enforces reconciliations, and coordinates policy reviews. Responsible for training cardholders, approving limits, and supporting internal and external audits to ensure compliance with organizational controls and federal financial management expectations.

Cardholder

Authorized employee who uses the charge card for permitted purchases, obtains itemized receipts, and submits timely documentation. Must follow single‑transaction and monthly limits, complete required training, and cooperate in reconciliation and dispute processes to avoid disciplinary action.

Core Sections to Include in a Professional Policy

A complete policy defines scope, authorization, allowable purchases, documentation requirements, reconciliation, dispute resolution, and enforcement to standardize low‑dollar procurement practices.

Scope

Defines eligible departments, card types, transaction thresholds, and prohibited categories. Specifies when purchase orders are required and describes emergency, subscription, and recurring purchase exceptions and approval paths.

Authorization

Establishes cardholder enrollment procedures, supervisor approval limits, and delegated authority. Documents required approvals for single‑transaction or monthly limit increases and periodic reauthorization processes, including training verification.

Allowable Purchases

Lists acceptable expense categories, vendor types, and dollar thresholds. Provides examples and references to procurement rules that restrict prohibited items and services and outlines reimbursement procedures.

Documentation

Requires itemized receipts, proof of delivery, and transaction justification. Specifies electronic receipt storage, receipt retention periods, and procedures for missing documentation or disputed charges including supervisor attestation.

Reconciliation

Monthly reconciliation process aligns statements to receipts, coding, and budgets. Finance conducts reviews, disputes charges timely, and enforces corrective actions for discrepancies or delayed submissions.

Enforcement

Outlines consequences for noncompliance including repayment, suspension of card privileges, retraining requirements, and progressive disciplinary steps up to termination and possible referral to investigative or legal authorities when intentional misuse is suspected.

Step‑by‑Step: From Enrollment to Reconciliation

Follow this step‑by‑step process to enroll cardholders, issue cards, make purchases, and reconcile monthly activity in accordance with the policy.

  • 01
    Enroll Cardholder: Complete application and training; obtain manager approval.
  • 02
    Issue Card: Assign card, set limits, and log account details.
  • 03
    Make Purchase: Verify vendor eligibility, obtain receipt, and follow limits.
  • 04
    Reconcile: Match statement to receipts, code expenses, and submit.

Digital Workflow Settings for Card Program Administration

Configure the digital workflow to collect cardholder details, approvals, receipts, and automated reminders for reconciliation.

Field Configuration
Cardholder Name Auto‑fill from HR or manual entry.
Approval Limit Set single and monthly dollar limits.
Receipt Upload Require itemized receipt for every transaction.
Reconciliation Reminder Automatic email reminders 7 days before due.

How a Purchase Moves Through the System

This routing flow shows how purchase requests become reconciled charges through approvals, card use, and finance processing.

  • Request: Employee confirms need and budget availability.
  • Approval: Supervisor authorizes purchase within delegated limit.
  • Charge: Card is used and receipt captured at point‑of‑sale.
  • Review: Finance reconciles statement, disputes errors, and closes cycle.

Platform and Integration Requirements

Platform requirements include secure eSignature, mobile access, integration capabilities, and audit trail retention.

  • File Formats: PDF, DOCX, and native forms supported
  • Integrations: Salesforce, Microsoft 365, NetSuite, Google Workspace
  • Authentication: Email link, SMS code, or stronger MFA

Security, Compliance, and Data Controls to Include

Encryption: TLS 1.2/1.3 in transit; AES‑256 at rest
HIPAA: BAA required for protected health information
Audit Trail: Timestamps, IP addresses, action log
Authentication: Email, SMS, or stronger MFA options
Certifications: SOC 2 Type II, ISO 27001, PCI DSS
Retention: Encrypted storage; export and audit capabilities

Key Deadlines and Submission Windows

Key submission and reconciliation deadlines help manage liability and tax reporting obligations for charge‑card purchases.

Monthly Card Statement Reconciliation Due Date:

Submit reconciled statements and receipts within 15 calendar days after statement close.

Receipt Submission and Retention Deadline:

Retain and upload itemized receipts within 30 days of transaction.

Quarterly Program Compliance and Review:

Program owner reviews exceptions, limits, and training records each quarter.

Annual Policy Update and Audit:

Policy is reviewed yearly to align limits, vendors, and controls with risk.

Tax Reporting Considerations and Recordkeeping:

Maintain records per IRS rules; receipts may be required to substantiate deductions.

Program Rollout: Key Milestones

Key milestones track program rollout from policy approval to steady‑state operations and periodic compliance reviews.

01

Policy Approval

Governance approves policy and assigns program owner.

02

Cardholder Enrollment

Collect applications, verify training, and set card limits.

03

Card Issuance

Issue physical or virtual cards and record account numbers.

04

Operational Monitoring

Monthly reconciliation, exception reporting, and annual audits.

Common Preparation Mistakes to Avoid

  • Missing receipts or incomplete itemization that prevents matching charges during monthly reconciliation, causing delays and possible auditor disallowance.
  • Cardholders exceeding single‑transaction limits without prior approval, triggering exception reporting, supervisor review, and potential disciplinary measures.
  • Use of card for prohibited purchases such as personal expenses, gift cards, or restricted vendor categories leading to repayment demands.
  • Late reconciliation or missing reconciler approvals that leave balances unreconciled and increase risk of duplicate payments or fraud.

Penalties and Risks for Noncompliance

Tax Penalties: IRC §6721: information return fines apply
I‑9 Violations: Civil fines $281–$2,789 per violation
Card Misuse: Repayment, suspension, or termination
Audit Findings: Disallowed expenses and corrective action
Intentional Fraud: Higher fines; criminal exposure possible
Backup Withholding: 24% rate for missing TINs

Baseline eSignature Pricing and Feature Comparison

Comparison of baseline eSignature pricing and key features for evaluating solutions used in small purchase charge card workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Examples: How Organizations Use a Small Purchase Charge Card Program

Real‑world examples show how organizations apply a Small Purchase Charge Card Program Policy and Procedure to control spend and improve cycle time.

Municipal Procurement

A mid‑sized city adopted a charge card program to accelerate low‑dollar purchases and reduce PO backlog across departments.

  • Reduced processing time by weeks.
  • Implementation included defined cardholder training, monthly reconciliations, and audit sampling. The city reduced purchase order volume, improved documentation compliance, and achieved clearer segregation of duties for procurement staff while maintaining transparency for auditors.

University Purchasing

A public university rolled out cardholders in ancillary departments to expedite lab supplies and small repairs while tracking sponsored project expenses.

  • Improved grant accounting and cost allocation.
  • The policy required project codes on each transaction, quarterly reviews by central finance, and training on allowable vs prohibited expenditures. These controls reduced mischarges and simplified sponsor reporting for audits.

Practical Tips to Improve Accuracy and Efficiency

Practical tips improve policy adherence, reduce exceptions, and streamline reconciliation for cardholders and finance teams.

Mandatory role‑based training before issuing cards
Deliver instructor‑led or eLearning sessions covering allowable purchases, receipt documentation, reconciliation timelines, and fraud awareness. Record training completions in HR files and require periodic refresher courses to reinforce policy changes and reduce misuse.
Use spending controls and vendor blocks
Configure single‑transaction and monthly limits, restrict merchant category codes for prohibited vendors, and apply exceptions workflows. Automated controls prevent many common violations before purchases are completed. Review vendor blocks quarterly and update as procurement needs change.
Simplify receipt capture and storage
Require photo or electronic upload of itemized receipts at point‑of‑sale. Use OCR or Magic field extraction to reduce manual entry, and standardize naming conventions to improve searchability during audits, and retain original records per retention schedule.
Perform targeted audits and exception monitoring
Run monthly exception reports for missing receipts, limit breaches, and unusual merchant activity. Assign corrective action, require repayments where appropriate, and escalate repeated violations to HR or legal review for disciplinary resolution.

Frequently Asked Questions About the Program

Frequently asked questions address enrollment, acceptable purchases, reconciliation issues, and eSignature use for policy acknowledgements.


Need help? Contact support

Explore Templates

Memo for Performance Improvement Plan Employee Memo Follow-Up to Performance Appraisal Memo Employee Record Employee Warning Document
be ready to get more
Join over 28 million airSlate SignNow users
Sign Now
Company
Forms
Pricing
Resources
Knowledge base
Other Products
© 2026 airSlate Inc. All rights reserved.