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Contents

 

Procedure Objective

Rationale

Program Administrator

Scope

Definitions

Responsibilities

Overview

Procedures

  • Section I. Obtaining a ProCard
  • Section II. ProCard Restrictions and Use
  • Section III. ProCard Procedure Reviews
  • Section IV. Receipt of Materials and Services
  • Section V. Required Recordkeeping
  • Section VI. Billing, Payment, and Account Distribution
  • Section VII. Disputing a Transaction
  • Section VIII. Reporting a Lost or Stolen ProCard
  • Section IX. Cardholder Termination or Transfer
  • Section X. No Transaction Activity Card Cancellation
  • Section XI. Minimal Activity Card Cancellation
  • Section XII. Exceptions to This Procedure
  • Forms and Tools/Online Processes
  • Procard Training Quick Guide
  • Pro-Card and Travel Card Policies and Procedures

 

Procedure Objective

This procedure provides guidelines for obtaining a purchasing card (ProCard) for the purchase of certain low-value items, maintaining required records associated with using the card, making approved purchases within allowed dollar limits, disputing ProCard transactions, providing notification of changes in ProCard and cardholder information, and reporting the loss or theft of a ProCard. Specific restrictions, such as the disallowance of card-sharing, are included in this fiscal procedure.

Rationale

The ProCard program is authorized by Texas Procurement and Support Services (TPASS) through a contract with Citibank. UT Permian Basin ProCards are Citibank MasterCards. The ProCard program is designed to delegate authority and capability to purchase certain low-value items directly to the departmental account manager. Use of the ProCard significantly reduces the acquisition time and labor costs associated with the requirement to obtain purchase order numbers, process invoices for payments and prepare large numbers of voucher/payment documents. Procedures for using the ProCard and maintaining the required documentation must be strictly followed.

Program Administrator

The program administrator for the UT Permian Basin ProCard program is Diana Rodriguez.

Scope

All UT Permian Basin employees participating in the ProCard program and employees participating in these procedures.

Definitions

Controlled Assets: Assets that qualify as property but do not meet the capitalization threshold and that must be secured and tracked due to the nature of the item. Controlled assets consist of non-consumable items having a value of $100.00 to $4,999.99 per unit and firearms regardless of value.

UTShare: The accounting system used in UT Permian Basin

HUBs (Historically Underutilized Businesses): Historically underutilized businesses that are certified by the State of Texas. Cardholders are strongly encouraged to identify and use HUBs whenever available and competitive.

TPASS (Texas Procurement and Support Services): awards and manages hundreds of statewide contracts on behalf of more than 200 state agencies and 1,700 local government agencies.

Reconcile Statement/Procurement Card Transaction Page: Used to reconcile, manage, and approve procurement card transactions loaded into UTShare.

Responsibilities

Asset Management

             Provides instruction for purchase of controlled assets and capitalized equipment

Department Head or Equivalent

             Assumes responsibility for any appropriate disciplinary action

             Reclaims ProCards from terminating or transferring employees

             Assumes responsibility to authorize employees to become cardholders within the department

Reviewer

             Reconciles the work completed by the Reconciler.

             After verifying accuracy of the reconciliation, approves the cardholders statements for payment

Reconciler

             Authorized to manage and reconcile cardholders Procurement Card Transaction Page, transaction log and carry over log

Employee/Cardholder

             Assumes responsibility for appropriate use of ProCard and all associated recordkeeping

             Activates ProCard and completes cardholder agreement

             Verifies receipt of materials and services

             Questions all unauthorized purchases

             Immediately reports fraudulent use and lost or stolen ProCards

Citibank

             Assumes liability for fraudulent use after a ProCard has been reported lost or stolen

             Provides transaction data and inactive card reports

             Provides customer service assistance

Division of Business Affairs

             Conducts periodic reviews of departments using ProCards

Program Administrator/Director of Purchasing

             Coordinates acquisition, distribution and termination of ProCards.

             Provides training for cardholders

             Establishes and implements internal checks and balances for ProCard procedures

             Authorizes payment to Citibank

Purchasing

             Monitors use of ProCards and makes appropriate notifications of compliance issues

             Processes payments to Citibank

Vice President of Business Affairs (or Designee)

             Approves reactivation of inactive cards

UT Permian Basin

             Assumes liability for fraudulent use before a ProCard is reported lost or stolen

 

Overview

 

The procurement card is a Master Card issued through CitiBank which gives the cardholders freedom and authority to make small dollar purchases with ease.

 

  1. Drastically reduces the amount of time and paperwork required to purchase low-dollar items. 
  2. Speeds up payments to Vendors.
  3. Able to make purchases online.
  4. Able to purchase goods and services from vendors who will not accept PO’s.
  5. Paperwork done once a month vs. every time you wish to make a purchase.

 

Procedures

 

Section I. Obtaining a ProCard

  1. Non-employees of the university are not eligible to be issued a ProCard. The employee requesting his/her first ProCard will complete a Citi Bank Pro-Card Application and route the completed form for approval. The approved application will be forwarded to the ProCard program administrator in Purchasing. Upon receipt of the application, the program administrator will forward the necessary documentation to Citibank for processing.
  2. Citibank will send the ProCard(s) to the program administrator. This process normally takes about 5-7 days. Before taking possession of the new card, all approved applicants will be required to attend training to familiarize them with these Procedures, and complete the Cardholder Agreement. Citibank MasterCards are issued in the cardholder's name with the State of Texas emblem and the wording "Official Use Only".
  3. The cardholder will be responsible for activating the card. For each card and billing cycle, a separate log is maintained. The cardholder will be responsible for collecting required support documentation and reconciling the transaction log to the Procurement Card Transactions received at the end of each billing cycle, and by the assigned approval due date.

Section II. ProCard Restrictions and Use

A.   Restrictions on Use and Penalties for Noncompliance

1.            Authorized Users

Only current UT Permian Basin employees may be issued a card. The ProCard should not be used by anyone other than the individual employee to whom the card is issued; however, there are legitimate instances when the cards can be shared. If a ProCard user cannot be available when purchased goods are delivered, someone else can sign for the property. When necessary, a cardholder who purchases an item over the phone or online from a local vendor may have someone else pick up the item. In both these instances the cardholder should also sign the delivery document as soon as possible and annotate in the transaction log that this was done.

2.            Maximum Purchase Amounts

The maximum single purchase limit is $250, including freight. Cardholders may not split or divide purchases into amounts less than $250 to circumvent the requirement to process a small dollar purchase order for purchases over $250. Cardholder transactions will be reviewed monthly for split purchases. If apparent splits are identified, the cardholder will be notified via email. Cardholders found in violation of this policy will receive a written warning. A second violation will result in the card being suspended. The maximum total amount of allowable purchases per month is $500 per card. Procurement Services will also verify single purchase/monthly limits monthly with the bank.

3.            Liability for Unauthorized Purchases

A cardholder making an unauthorized purchase will be held personally liable to reimburse the University for the full amount of purchase within ten (10) working days of discovery. If on the eleventh (11th) working day of discovery, the cardholder has not reimbursed the University, the card will be suspended pending a full investigation of the cardholder's transactions. Additionally, the state ProCard assigns the University liability for unauthorized purchases on lost cards.

  1. Citibank will be liable 100% for fraud after the card has been reported lost/stolen to Citibank. For unauthorized charges made prior to the card being reported lost or stolen, the customer's liability is limited to a maximum of $50 per card.
  2. Citibank will provide coverage of up to $100,000 per incident for employee abuse; however, in order to for the University to file a claim, the employee must be terminated.

4.            Disallowed Purchases

University funds cannot be used to pay for the items listed below.

  1. Charges for the following items are disallowed:
  2. Ammunition may be purchased with a ProCard only by the UT Permian Basin Police Department.
  3. No purchases, such as scholarship payments, may be made on behalf of students except for medical services purchased by the Athletics department for student athletes.
  4. Wireless communication devices and service fees, i.e. cell phones, PDAs, iPhones, and wireless communication adapters/internet cards, may not be purchased with a ProCard. Purchase of software applications for these devices and software applications for tablets and all SmartPhones is also prohibited. See Wireless Communication Device Allowance Procedures .
  1. Airlines
  2. Automobile rentals
  3. Hotels and motels
  4. Eating places, restaurants
  5. Catering
  6. Bars, taverns, nightclubs
  7. Fast food restaurants
  8. Package stores, beer, wine, liquor
  9. Truck stop transactions
  10. Travel and related expenses
  11. Cash advances, travelers' checks, etc.
  12. Radioactive materials
  13. Firearms
  14. UT Permian Basin tuition and/or fees
  15. Internet provider service
  16. University parking decal fees
  17. Charitable donations
  18. Tours, sporting events, and entertainment events
  19. Traffic citations
  20. Toll tags
  21. Insurance
  22. Desktop computers, laptop computers, and tablets
  1. Prescription drugs and controlled substances may not be purchased with a ProCard except when purchased for Student Health Services and Athletics for student athletes.
  2. Animals may be purchased with a ProCard only if purchased by the Departments of Biology or Bioengineering, or by the Office of Research Compliance.
  3. Veterinary Services, medical or surgical, by a health professional who specializes in animals, may only be purchased by the Office of Research Administration.
  4. Consulting and personal services may not be purchased with a ProCard except for medical services purchased by the Athletics department for student athletes.
  5. Gifts over $100 may not be paid for with a ProCard
  6. Gift cards/certificates
  1. Gift Cards/Certificates for non-University employees
    1. A completed Gift Certificate Expense Form must be filed with the Purchasing Card Transaction Log.
    2. Gift card/certificates with a value of more than $100 require an approved exception (see Section XI) prior to purchase. A copy of the exception must be filed with the Purchasing Card Transaction Log, along with a copy of the completed Gift Certificate Expense Form.
    3. The original Gift Certificate Expense Form must be forwarded to Payroll, as this is a taxable benefit, regardless of the value.
  2. Gift Cards/Certificates for University employees, including student workers.
    1. Must have an approved exception (see Section XI) prior to purchase, regardless of value, and filed with Purchasing Card Transaction Log.
    2. A copy of the completed Gift Certificate Expense Form must be filed with the Purchasing Card Transaction Log.
    3. The original Gift Certificate Expense Form must be forwarded to Payroll, as this is a taxable fringe benefit.

       

5.            Authorized Business Use

The ProCard is to be used for business purposes only and may not be used for personal purchases. Use of a ProCard for personal purchases for any amount may result in disciplinary action, up to and including termination of employment.

6.            Clarification of ProCard Use

If further clarification is required on ProCard restrictions and use, please contact Viola Puga at ext. 2975.

B.   Choice of Vendor

  1. Determine if a Historically Underutilized Business (HUB) can provide the needed services or goods. A HUB is a Texas business that has been certified by the State of Texas as being owned and operated by a minority or woman. Cardholders are strongly encouraged to make purchases from certified HUBs that are available and competitive. A purchase made from these businesses gives "HUB credit" to UT Permian Basin, and the credit is recognized in the State's semiannual and annual HUB reports. 
  2. Contact the prospective vendor to determine if the vendor accepts the ProCard. If no acceptable vendor for the services or products required accepts the ProCard, refer to Best Value Procurement.
  3. Check to be sure the vendor is not on the State of Texas "Warrant Hold" list. State agencies are not allowed to do business with or make payments to entities that are on "warrant hold", with the State of Texas until the hold is lifted. Purchases over $100 or more from a vendor based in the State of Texas require checking the vendor's status prior to making the purchase. Vendor status information is available on the Texas Comptroller website. Enter the vendor's name in the box provided and hit "search". If the vendor is on hold, the vendor's name and address will appear. Document in the space provided on the ProCard transaction log that the check was completed.

C.   Purchase of Food and/or Refreshments

When food and/or refreshments are purchased with the ProCard an official occasion expense form  must be completed, signed, and dated by the cardholder or by a department official. This form must be kept on file with the receipt(s) and the ProCard transaction log. (Purchase of coffee or coffee service for office use, purchase of food for nursing instructional purposes, and purchase of food for animals and lab experiments are exempt from this requirement.)

D.   Taxes

ProCard purchases are exempt from all federal excise taxes as well as state and city sales tax. The cardholder must advise the vendor of the tax-exempt status. If necessary, a Texas Sales and Use Tax Exemption Certification may be provided to the vendor. If state sales taxes are charged, it is the cardholder's responsibility to work with the vendor to get credit for the charges. Purchasing will review cardholders' transactions monthly for sales taxes paid. If payment of sales tax is apparent, an email will be sent to the cardholder directing them to contact the vendor. In accordance with the Cardholder Agreement, the cardholder is personally liable for any unauthorized charges, including tax.

E.   Purchase of Controlled Assets

The Purchasing Department must be notified within forty-eight (48) hours of the purchase of any equipment that is deemed a controlled asset to insure proper coding, tagging, and reporting. The State Comptroller requires the reporting of controlled assets property to the State Property Accounting System.

 

  1. Complete an Asset Information Form and email the form to the Purchasing Department with the invoice, sales slip, or packing slip when property deemed to be a controlled asset is purchased.
  2. File the original receipts and a copy of the Asset Information Form with the ProCard transaction log.
  3. Change the default account number on the appropriate Reconcile Statement/Procurement Card Transaction Page to the correct controlled item account number as needed when the Reconcile Statement/Procurement Card Transaction Page is processed. Controlled asset account numbers are listed below. Note: all costs incurred, including freight, shipping, handling, etc., are considered as part of the total cost of the asset. 
  1. Controlled Property Items $100.00 to $250.00:
  1. Account Number 63162: Sound systems, portable cameras, TVs, video players/recorders, and projectors.
  2. Account Number 86401: Museum Artifacts

Section III. ProCard Procedure Reviews

  1. Representatives from Business Affairs will periodically visit with all departments utilizing the ProCard to provide documentation in order to assess levels of familiarity with these procedures. Training is provided for new ProCard users, and monthly reviews of departmental ProCard transactions are conducted for indications of compliance issues.
  2. Monthly reviews of ProCard transactions will be conducted for indications of compliance issues.
  3. Department Head or equivalent will receive notice of any indications of noncompliance, and ProCard privileges may be terminated. Disciplinary actions that may be taken are consistent with those found in the Discipline and Discharge Policy. The department head or equivalent is responsible for carrying out disciplinary action.

Section IV. Receipt of Materials and Services

  1. The cardholder assumes responsibility for ensuring receipt of materials and services and shall follow up with vendors to resolve any delivery problems, discrepancies, and/or damaged goods. 
  1. If an employee other than the cardholder is allowed to pick up or sign for receipt of an item purchased with ProCard, the cardholder should sign the delivery document as soon as possible and annotate in the transaction log that this was done
  2. The cardholder should request that the vendor deliver the goods directly to the cardholder's physical location (street address, building name and suite/room number) to preclude any delivery problems, discrepancies, and/or damaged goods. If materials are ordered by phone, require the vendor to include a sales receipt in the package with the filled order to provide documentation. The cardholder should also ask the vendor to mark the outside packaging label with the cardholder's name, department name, phone number, and the code "PCP" (ProCard Purchase). This information will allow prompt delivery to the cardholder if the package is delivered to Central Receiving.
  3. The cardholder is responsible for coordinating returns directly with the vendor and for securing the appropriate credit. Documentation of returned items should be attached to the transaction log.

Section V. Required Recordkeeping

  1. Transaction Log

    When a new ProCard has been received and activated, a Procurement Card Transaction Log must be set up and maintained to document all activity associated with the use of the card. A separate log is maintained for each card. Entries to the log should be made as transactions occur.

    1. To facilitate recordkeeping and reconciliation processes, each cardholder should maintain current transaction log information including, at a minimum, the following items:

    1. Transaction Date
    2. Vendor Name
    3. Transaction Amount
    4. Account Number
    5. Object Code
    6. Accounting Cost Center

    2. For recordkeeping purposes, an itemized document for each item that was purchased, returned or credited should be maintained with the transaction log. Some examples are:

  2. ProCard Files
  1. Sales receipts
  2. Credit memos
  3. Packing slips

The transaction and carry over logs, along with support documentation, should be filed by cardholder name and in date order. The file for all cardholders will be maintained in a central location at the department or equivalent level. Documentation will be retained for the current fiscal year plus three fiscal years.

Section VI. Billing, Payment, and Account Distribution

     
  1. Citibank sends your bill directly to your department for purchases made during the billing cycle from the 4th of each month through the 3rd of the following month. After the information has been reviewed and approved, there is a deadline for completion to participating departments for review and processing every thirty (30) days. Procurement Services receives notification of delinquent Reconcile Statement/Procurement Card Transaction Page that have not been processed by the assigned due dates.
  2. When the Reconcile Statement/Procurement Card Transaction Page is received it is reviewed and approved by the cardholder and the reconciler within the specified deadline. The cardholder assumes responsibility for verifying all purchases and transactions listed on the monthly Reconcile Statement/Procurement Card Transaction Page 
          • The reconciler will first reconcile the charges on the ProCard Transaction Log to the Reconcile Statement/Procurement Card log. If the reconciler of the transaction log is different from the cardholder, the reconciler will need to sign and date the transaction log as well as the cardholder.
          • The reconciler will replace the default account numbers with correct numbers, make any necessary changes to the cost center, and ensure that detailed receipts that support all transactions are available. 
          • When the reconciliation is complete, the reconciler will note "yes" in the "reconciled" column of the transaction log to indicate that the item posted to the Reconcile Statement/Procurement Card Transaction Page matches the entry in the log.
          • Any discrepancies should be PROMPTLY investigated with "action taken" recorded in the "comments" section. When the charges have been reconciled to the Reconcile Statement/Procurement Card Transaction Page and the transaction log, the cardholder and reconciler will sign and date the transaction log and route the log and supporting documentation to the reviewer.
  3. The reviewer will review, date, and sign the log and then electronically approve the Reconcile Statement/Procurement Card Transaction Page. This must occur by the due date indicated when the original notification for the Reconcile Statement/Procurement Card Transaction Page was received. Failure to approve the Reconcile Statement/Procurement Card Transaction Page for three (3) consecutive months will result in a warning letter sent to the cardholder with a copy to the department head or equivalent. Failure to approve the Reconcile Statement/Procurement Card Transaction Page for four (4) consecutive months will result in suspension of the card.
  4. The Carry Over Log is designed to keep track of transactions that are made in one month, but are reflected on the Reconcile Statement/Procurement Card Transaction Page in a different month. This occurs due to the difference in the actual transaction date and the date the vendor posts the transaction to the bank. Use of this form will aid in the discovery of potential fraudulent charges that may occur. 
          • Carry Over Transaction Log: If the transactions of the Reconcile Statement/Procurement Card Transaction Page and the transaction log do not match, the cardholder will prepare a Purchasing Card Carry Over Transaction Log and Example. The transaction log and the carry over log, along with supporting documentation, will be routed to the reviewer for review. The reviewer will then review, date, and sign both logs and electronically approve the Reconcile Statement/Procurement Card Transaction Page.
  5. Procurement Services will process payment to Citibank using the default information for each card and any changed information received by the deadline. If the primary cost center cannot accept the charge, Procurement Services will contact the cardholder for a cost center that will accept the charge. 

Section VII. Disputing a Transaction

Any charge that appears on the monthly statement may be disputed if it is in error.

  1. If there is a charge that is not recognized, or it appears to be incorrect, the cardholder will first contact the vendor and try to resolve the dispute.
  2. If an agreement cannot be reached with the vendor, the cardholder will contact Citibank Customer Service at (800) 248-4553.
  3. If the dispute cannot be resolved on the phone, the cardholder will ask the bank to send a dispute resolution form.
  4. Disputes must be processed within 60 days of the statement date on which the transaction posted, even if the merchant is working on resolving the dispute.

Section VIII. Reporting a Lost or Stolen ProCard

  1. If the ProCard is lost or stolen, the cardholder must notify the bank and the UT Permian Basin Police Department immediately. The University will be liable for any charges made with the card before the card is reported lost or stolen. Bank representatives are available twenty-four hours a day, seven days a week, at (800) 248-4553 to receive calls. The UT Permian Basin Police Department number is (432) 552-2020. The cardholder will also notify the department head and the ProCard Program Administrator in Procurement Services.
  2. Upon receipt of the cardholder's telephone call, the bank will immediately suspend the ProCard and issue a new card.

Section IX. Cardholder Termination or Transfer

  1. When a cardholder terminates employment with the University, the department head or equivalent has the specific obligation to reclaim the ProCard from the employee and return the card to the Program Administrator prior to the employee's termination date. Failure to return the card promptly may result in revocation of all departmental ProCard privileges.
  2. When a cardholder transfers from one department to another, the ProCard will be cancelled. The department that the employee is transferring from must notify Purchasing to initiate the cancellation of the ProCard. To take the appropriate actions for the employee to receive a new ProCard for the new department, please see Section I of this procedure.
  3. Purchasing will receive a copy of the Employee Clearance Form by email when employees terminate employment or change departments. 

Section X. No Transaction Activity Card Cancellation

Citibank provides Purchasing with a semiannual listing of cardholders whose accounts have had no transaction activity for six (6) months. Purchasing will advise the listed cardholders that their ProCards will be cancelled unless written justification for retention, approved by the provost or applicable vice president or designee, is provided.

Section XI. Minimal Activity Card Cancellation

At the beginning of each calendar year, Purchasing will review all cardholders’ transactional history for the previous year. Cardholders that have 24 or less transactions will be advised that their ProCards will be cancelled. If the department head, or equivalent, does not want the card cancelled, a written justification for retention will need to be provided to and approved by the provost or applicable vice president or designee.

Section XII. Exceptions to This Procedure

All requests for exceptions to this procedure must be in writing and approved by the requestor's department head or appropriate supervisor and approved by the Vice President of Business Affairs. The request must be submitted using the BA Exceptions Tracker Request menu. Each request should include detailed justification for the exception and the benefit to the University if the exception is granted. The Vice President of Business Affairs will review each request on an individual basis. The approval of an individual request for an exception to this procedure does not change the procedure. Documentation of the request and its disposition will be maintained in the Business Affairs online policy exceptions files.

 

Forms and Tools/Online Processes

 

•             Official Occasion Expense Form 

             Purchasing Card Transaction Log

•             Tax Exempt Form

             Texas Sales and Use Tax Exemption Certification 

             HUB Program

•             Citi Bank Pro-Card Application