Maintenance Technician Purchase Card Policy

As a small property management business with 5-50 staff, establishing a clear purchase card policy for your maintenance technicians is essential for effective expense management for property management. By following these guidelines, you can help maintain a healthy and transparent financial environment.

Establishing the Purchase Card Policy

Before issuing purchase cards to maintenance technicians, you must establish a clear policy that outlines the terms and conditions of use.

As of October 1, 2025, the general micro-purchase threshold is $15,000, which means that any purchase under this amount can be made using a purchase card.

The Governmentwide commercial purchase card is the preferred method of payment for micro-purchases.

When setting up the purchase card policy, consider the following:

• Define the default single transaction limit for purchase cardholders, which is typically $15,000.
• Establish the default monthly credit limit for each purchase cardholder, which is also typically $15,000.
• Explain that purchases made using the Government purchase card are exempt from state sales tax.
• Outline the process for requesting a purchase card, including the required documentation and approval procedures.

Setting Spending Limits and Allowable Purchases

When establishing spending limits and allowable purchases for your maintenance technicians, consider the following guidelines.

Cardholders must retain supporting documentation for purchases for a period of six years. This documentation may include receipts, invoices, and other records that verify the purchase and its cost.

Spending limits can be set based on the specific needs of your business. For example, you may want to establish a daily spending limit for each technician or set a maximum amount that can be spent on certain types of purchases, such as tools or equipment.

Allowable purchases should be clearly defined and communicated to cardholders. This may include:

• Tools and equipment necessary for performing maintenance tasks
• Supplies and materials required for completing jobs
• Travel expenses related to maintenance work, such as gas or lodging

It's essential to review and update your spending limits and allowable purchases regularly to ensure they remain aligned with your business needs.

Establishing a clear and concise policy will help prevent misuse of company funds and ensure compliance with any relevant regulations.

Compliance and Documentation Requirements

It's essential to maintain accurate records of all purchase card transactions to ensure compliance and prevent misuse of company funds. Here are some key requirements to keep in mind:

• Establish a system for regularly reviewing and reconciling purchase card statements.
• Verify that all transactions are properly documented, including receipts, invoices, and delivery tickets.
• Maintain a centralized log of all purchase card transactions, including dates, amounts, and descriptions of purchases.
• Ensure that all purchase card transactions are properly approved and authorized by the designated approver.
• Conduct regular audits of purchase card transactions to identify and address any discrepancies or irregularities.

It's also crucial to maintain confidentiality and security when handling sensitive financial information. Ensure that all purchase card statements and transaction records are stored in a secure location, and limit access to authorized personnel only.

Establish a clear process for addressing any discrepancies or issues that arise during the audit or review process. This may include escalating the issue to a higher authority or taking corrective action to prevent future occurrences.

Best Practices for Managing Purchase Cards

• Establish a clear process for technicians to report and submit purchase card transactions in a timely manner.
• Regularly review and reconcile purchase card statements to ensure accuracy and detect any discrepancies.
• Conduct regular audits to verify that purchase card usage aligns with company policies and procedures.
• Designate a specific person to oversee and manage the purchase card program, ensuring compliance with company policies and procedures.
• Provide technicians with clear guidelines on what constitutes an allowable purchase and ensure they understand the consequences of misuse.
• Establish a procedure for handling and resolving any disputes or discrepancies related to purchase card transactions.
• Consider implementing a system to track and monitor purchase card usage, such as a spreadsheet or a centralized database.

Additionally, consider the following:

• Set clear expectations for technicians regarding the use of company funds and the consequences of misuse.
• Provide regular training and education to technicians on the company's purchase card policy and procedures.
• Encourage open communication between technicians and management regarding any issues or concerns related to purchase card usage.

Purchase Card Policy Template

The following template outlines the essential components of a purchase card policy for maintenance technicians:

Policy Statement:

The [Company Name] purchase card policy is designed to provide [Company Name] maintenance technicians with a convenient and efficient method of making purchases necessary for the performance of their job duties.

Purchase Card Holder Responsibilities:

• Ensure that all purchases are made in accordance with this policy and any applicable laws and regulations.
• Keep accurate and detailed records of all purchases, including receipts and invoices.
• Return the purchase card to the [Company Name] office upon completion of the job or at the end of each month.

Approval Process:

1. The [Company Name] office will review and approve all purchase card requests before issuance.
2. The purchase card holder will be responsible for obtaining approval from the [Company Name] office before making any purchases exceeding [dollar limit].

Compliance and Termination: