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Section 7: Non-Payroll Disbursements

Procard Program

Effective Date:

08/20/12

Approved By:

Associate Vice President for Financial Affairs

Last Revised On:

06/22/2018

For Assistance Contact:

Procard/Travel Card Administration (PTCA)
Assistant Vice President, Financial Affairs and Controller

PURPOSE/SCOPE

To provide guidance on how to obtain, use and account for expenditures using a Citibank® issued Procurement Card (Procard). This guideline applies to all authorized UTSA Procard users and departmental administrators involved in this process.

AUTHORITY

UNIVERSITY GUIDELINES

Table of Contents

A. Overview

The UTSA Procard program is a convenient purchase and payment tool for small dollar purchases up to $5,000 for those vendors that do not accept purchase orders or checks.

NOTE: Citibank issues the UTSA Procard and provides electronic transaction authorizations and billings.

The issuance of a Procard does not affect the personal credit of the cardholder. However, cardholders are personally liable to UTSA for unauthorized purchases and any other inappropriate use of the card.

The Procard program is administered by the UTSA Procard/Travel Card Administration (PTCA) Office.

B. Roles and Responsibilities

The cardholder must:
  • Safeguard the Procard and account number at all times by securing the card while in their possession and/or store it in a secure location within their department, such as a locked file cabinet or locked desk drawer.
  • Not allow anyone else to use the Procard to complete in-person, telephone, or online purchases.
  • Ensure all purchases directly benefit UTSA and are compliant with this guideline and any regulatory, statutory, specific grant, funding source, departmental or program requirements.
  • Never use the Procard to complete personal purchases, even if the cardholder plans to reimburse UTSA.
  • Report suspected inappropriate or questionable use of the Procard to the PTCA Office.
  • Adhere to the limits and restrictions of the Procard.
  • Inspect all purchases promptly for accuracy in the event a purchase must be returned to the vendor.
  • Review the monthly Procard memo statement to assure all charges are authorized and report any unauthorized charges and/or billing errors to Citibank before the payment due date. See Disputed and Declined Transactions for more information.
  • Ensure all authorized charges resulting from the use of the Procard are paid in full by the 20th of each month, not the payment due date on the memo statement.
  • Obtain itemized receipts or other forms of supporting documentation for each purchase.
  • Notify Citibank and PTCA if the Procard is lost, stolen or damaged. See Lost, Stolen or Damaged Procards for more information.
  • Take the online course AM 537 Procard Refresher Training every three years.
  • Return the card to PTCA upon separation, transfer to another department, or loss of full-time benefits eligible status. See Canceling and Returning a Procard.
  • Request temporary deactivation of the card for absences of more than two weeks.

The Department Manager is responsible for approving an applicant’s request for a Procard, validating the appropriate usage of the Procard for official UTSA business, and assuring compliance with this guideline when authorizing Procard payments.

The Department Manager must:
  • Designate the default Cost Center responsible for payment of all activity authorized on the Procard.
  • Assign Procard purchasing limits
  • Designate proxies to complete the monthly Procard payment process in PeopleSoft via the Procard Application and Agreement form. For more information, see Procard Reconciliation and Payment Process

    NOTE: Each person can only be assigned one proxy role per card. The applicant and department manager are designated as a reconciler and approver in PeopleSoft and each proxy role must have a minimum of one backup designated.

  • Approve the monthly Procard transaction log and payment.
  • Approve all Procard maintenance requests via the Card Maintenance Request (CMR) form.
The Department Manager may request inactivation or cancellation of a Procard within their college/division at any time at their discretion. Department Managers may delegate administrative tasks to individuals within their department, except that the following may not be delegated:
  • Approval of the Citibank Procurement card (Procard) Application and Agreement for new card requests
  • Requests to change the credit limit or single purchase limit for the Procard.
If Administrative tasks are delegated, the Department Manager retains primary responsibility for ensuring that transactions are appropriately reviewed, approved, documented and completed in a timely manner. The Department Manager must also ensure that:
  • Sufficient funds are available to pay the Procard balance
  • Payments are processed by the internal deadline to ensure compliance with the Texas Prompt Payment Law.

The PTCA office administers the Procard program at UTSA and is the primary liaison between UTSA and Citibank.

General responsibilities are:

  • Provide training to appropriate administrative staff and cardholders
  • Issue Procards
  • Maintain and update cardholder data
  • Process overrides requested by the Department Manager for appropriate transactions
  • Process credit and single purchasing limit requests and other changes (see Procard Maintenance for more information)
  • Reconcile Citibank charges with payments to Citibank and verify the payments posted correctly in the Citibank system
  • Monitor card transactions and processing payments to Citibank

C. Limits and Restrictions

The following additional limits and restrictions apply to Procard purchases.

Limits

  • SSingle transaction limit is $5,000. Individual purchases cannot exceed $5,000 including freight, although a lower limit may be set by the Department Manager, using the Procard Application and Agreement or CMR form.

    NOTE: Purchases cannot be split over time, or between vendors, recipients, etc. with the intent to circumvent the $5,000 single transaction limit. Repetitive purchases are limited to $15,000 maximum per vendor per fiscal year.
    Purchases with federal funds are subject to OMB Uniform Guidance, 2CFR Part 200.

  • Standard credit limit is $10,000, although the limit may be set at a lower limit by the Department Manager using the Procard Application and Agreement or CMR form.

    NOTE: Requests for a credit limit over $10,000 must be justified and approved by the Department Manager using the Procard Application and Agreement or CMR form and submitted to PTCA for final review and approval.

Restrictions
  • Vendor On Hold: No purchase over $500 may be made from a vendor whose status is on hold with the State Comptroller’s Office. Cardholders must verify the vendor status via the Texas Identification Number System (TINS) – Vendor Hold Search website prior to completing a purchase. For more information, see Vendor Hold, a section of Financial Management Operational Guideline (FMOG) – Texas Prompt Payment Law.
  • International Vendors: No purchases may be made from individuals or entities contained in U.S. government restricted, denied, debarred, designated or blocked persons lists. Cardholders are responsible for ensuring compliance by submitting a restricted party screening request to the Office of Research Integrity at export@utsa.edu prior to engaging the vendor.
  • Restricted Businesses:
    • Attorneys
    • Bank/ATMs
    • Bars/Lounges/Pubs
    • Caterers*
    • Entertainment provider
    • Gas stations
    • Hotels/Motels
    • Liquor/package stores
    • Pharmacies
    • Professional, contracted, or temporary service providers to include labor agencies
    • Restaurants*
    • Transportation services (taxies, limousines, charter buses)
    • Travel-related: Any business, including airlines, car rental, hotels/motels, travel agencies, etc.
  • Restricted Commodities:
    • Alcoholic beverages*
    • Ammunition and weapons
    • Animals
    • Cash advance and gift cards (including prepaid and declining balance cards)
    • Cellular Phones
    • Charitable contributions/donations
    • Computer or telecommunication equipment over $500 including shipping
    • Consulting services
    • Controlled assets
    • Controlled prescription drugs
    • Cylinder gases, liquid nitrogen
    • Decorations*
    • Electronic equipment over $500 including shipping
    • Equipment trade-in purchases
    • Entertainment*
    • Flowers*
    • Food*
    • Gasoline
    • Gifts
    • Hazardous chemicals or materials

      NOTE: Additional approval required, contact the UTSA Office of Environmental Health, Safety, and Risk Management (EHSRM) for details.

    • Leases
    • Personal items
    • Purchases that require a contract or include an auto-renew feature
    • Radioactive materials
    • Social, entertainment, and recreational memberships to include all Chambers of Commerce.

      NOTE: Certain professional memberships are allowed. See FMOG – Memberships Paid by University Funds for details.

    • Social or charitable organization dues
    • Telephone (cellular and land line) equipment, services, or mobile hotspots for any Wi-Fi enabled device.
    • Travel-related expenses
    *Denotes businesses and commodities allowable with special event privileges.

D. Special Event Privileges

Special Event privileges are authorized to a limited number of Procards and allow transactions with certain restricted businesses and purchase of certain restricted commodities in support of business related hospitality.
When expenditures are authorized for official occasions and university functions as defined in FMOG - Business Related Hospitality and Entertainment Expenditures, an approved Business Expense Form (BEF) must be retained on file.
To request Special Event privileges for a new Procard, the Department Manager must complete the Special Event Privileges section of the Procard Application and Agreement. Approval of Special Event Procard privileges is at the discretion of the Assistant Controller or designee. It is strongly recommended the applicant take AM0553 Business Related Hospitality and Entertainment Expenditures prior to receiving Special Event Privileges.

NOTE: To add or remove Special Event privileges for existing Procards, complete a CMR form. See Procard Maintenance for more information.
It is recommended that cardholders with Special Event privileges complete the Business Related Hospitality and Entertainment (AM553) training class prior to receiving Special Event privileges.

E. Applying for and Receiving a Procard

The applicant must be a full-time benefits eligible UTSA employee that is familiar with UTSA purchasing rules and regulations, business contracts processes and procedures, export controls, the Prompt Payment Law and vendor holds. It is strongly recommended that the applicant take AM0580 Purchasing Rules & Regulations and AM0541 Business Service Contracts: Processes & Procedures prior to receiving a Procard.

The applicant must obtain approval from the Department Manager for the default Cost Center responsible for payment of all activity authorized on the Procard.

If the Department Manager approves:
  1. The applicant must read and understand this guideline and sign the Procard Application and Agreement and forward to the Supervisor for signature approval.
  2. If the Supervisor approves, the application is forwarded to the Department Manager to update the form as follows:
    1. Enter the credit limit and single transaction limit (see Limits and Restrictions for more information)
    2. Enter the default cost center for payment of all activity authorized on the Procard
    3. Enter the People Soft proxy assignments for reconcilers and reviewers (approvers)
    4. Sign the application as Department Manager for the cost center certification
  3. The Department Manager must send the completed and signed form to the PTCA office for processing.
  4. The PTCA office reviews the completed and signed application and orders the card from Citibank after resolving any discrepancies.

    NOTE: If discrepancies cannot be satisfactorily resolved, the application is returned to the Department Manager for resubmission upon correction.

  5. If approved, the PTCA office notifies the cardholder and the Department Manager.

    NOTE: The Procard is delivered to the PTCA office.

  6. The applicant must complete AM0562 – Procard Compliance and Processing using UTShare/PeopleSoft.
  7. The Procard is distributed to the new cardholder at the completion of AM0562

    NOTE: The card cannot be distributed to anyone other than the cardholder whose name is embossed on the card.

  8. The cardholder acknowledges receipt of the card, establishes a PIN, and registers the card account on Citibank’s online system CitiManager.

    NOTE: During this process, the cardholder is asked for information necessary for activation, such as the account number (16-digit number on the front of the card) and the cardholder’s pass code (the last four digits of the cardholder’s UTShare/PeopleSoft Employee ID).

For questions regarding applying for and receiving a Procard, email the PTCA office at procard.travelcard@utsa.edu. To request changes to an existing Procard, see Procard Maintenance.

F. CitiManager System

Cardholders may use the CitiManager online system to review transaction history and download the memo statement for the current period. For more information, see the Self-Registration for Cardholders presentation, available on the PTCA – Training Materials web page.

G. Procard Reconciliation and Payment Process

Each month all Procard purchases must be reconciled and paid. This process is completed using the Citibank memo billing statements, a Procard Transaction Log and the UTShare/PeopleSoft financial accounting system.

NOTE: Citibank no longer mails the memo statements. It is the cardholder’s responsibility to log on to the CitiManager® website to download a PDF copy of the statement to attach to the Procard Transaction Log.

  1. The cardholder maintains a Procard Transaction Log in which the cardholder enters details of each transaction (goods received, amounts charged, etc.) and reconciles these transactions to the Citibank memo statement.
  2. The cardholder signs the Procard Transaction Log, attaches the required documentation and submits it to their supervisor and/or Department Manager for review.
  3. The supervisor and the Department Manager review and sign the Procard Transaction Log to certify that all transactions for the period have been included and verified, and that all transactions are in compliance with this guideline and any regulatory, statutory, specific grant, funding source, departmental or program requirements. If expenses are allocated to another Department Manager’s Cost Center/Project ID, that Department Manager must also sign the Procard Transaction Log.

NOTE: In some instances, the Department Manager may delegate signature authority for the Procard transaction log. This delegation must be on file with the University Controller.

PeopleSoft Accounting System
The cardholder (or proxy) reconciles the memo statement to the transactions on the Bank Statement Page of the UTShare/PeopleSoft financial accounting system.
  • The Chartfield “Account“ denotes the nature of a transaction (expense, revenue, etc.). Accounts that represent expenses begin with “6“ (for example, 63003 = Office Supplies). All Procard transactions are assigned a default expense account value of 67660 or 67620. The reconciler changes the default expense account value to the appropriate expense account value for each transaction. For detailed instructions see AM 0562 − Procard Compliance and Processing using UTShare/PeopleSoft. For more information on Chartfields and the Chart of Accounts see FMOG − Chart of Accounts.
  • When the expense account values have been changed from the default to the appropriate expense accounts and transactions have been reconciled, corrected if necessary, and saved, the cardholder (or proxy) notifies the Department Manager (or proxy).
  • The Department manager (or proxy) reviews the entries, and approves the transactions.
NOTE: All reconciliations and approvals must be completed on or before the 20th of each month. This deadline may change for holidays, short months, and fiscal year end to allow sufficient time to process payment. If a department fails to process a payment for its Procard purchases in a timely manner, PTCA will process the payment using the default Cost Center (see Roles and Responsibilities), and the cardholder may be subject to disciplinary action (see Non-Compliance Consequences).

H. Procard Maintenance

The CMR form is used to request the following changes to an existing Procard:

  • Single transaction and credit limit
  • Default cost center
  • PeopleSoft proxy assignment
  • Cardholder name change
  • Card cancelation
  • Card replacement
  • Temporary activation or deactivation
  • MCC/Vendor addition and deletion

All requests must be signed by the cardholder and Department Manager and submitted to the PTCA office.

I. Lost, Stolen or Damaged Procards

The cardholder must immediately report lost or stolen cards by calling Citibank at 800-248-4553. The cardholder must also notify the Department Manager/reviewer and the PTCA office immediately, or at the start of the next business day if the loss/theft is discovered or occurs outside of normal business hours.

If requested by the cardholder, Citibank completes the card replacement and sends the card to the PTCA office. The cardholder must complete a CMR form to obtain the replacement card. See Procard Maintenance for details.

If the card is subsequently found or otherwise recovered, it must be cut in half and delivered in person to the PTCA office or Fiscal Services (Main or Downtown campus) as soon as possible for destruction.

J. Canceling and Returning a Procard

The Procard may be cancelled for any of the following reasons:

The Procard must be cut in half and returned in person to the PTCA office or Downtown Fiscal Services with a completed CMR. See Procard Maintenance for more information.

NOTE: The PTCA Office cancels the Procard account and destroys the card.

K. Disputed and Declined Transactions

The cardholder must contact the vendor to dispute discrepancies on the memo statement, such as charges for items not received, incorrect pricing or duplicate billing in accordance with FMOG - Texas Prompt Payment Law.
  • The cardholder must call Citibank at 800-248-4553 to report the discrepancy even if the vendor is still researching the transactions. The cardholder electronically certifies and submits the Citibank CardHolder Dispute Form provided by Citibank via email. The cardholder must retain a copy of the Citibank dispute form with the other Procard supporting documentation.
  • If the discrepancy is resolved, the cardholder must verify that the correction has been completed when the next statement arrives.

  • NOTE: Texas sales tax exemption disputes cannot be disputed with Citibank.
If fraudulent activity is suspected:
  1. The cardholder must call Citibank at 800-248-4553 to report the suspect transaction(s). The cardholder completes, electronically certifies and submits the Declaration of Unauthorized Use form provided by Citibank via email. The cardholder must retain a copy of the Citibank dispute form with the other Procard supporting documentation
  2. The cardholder must provide PTCA with the Citibank email confirmation that the unauthorized user charges are being investigated.

It is possible for a vendor to receive a transaction-declined message at the point of sale when processing a Procard transaction. Citibank will send the cardholder an email notice of the declined transaction listing the supplier name, transaction amount, and a reason for the decline. The cardholder may logon to CitiManager to view the details of the declined transaction.

If the decline is received in error, the cardholder may contact the PTCA Office for assistance. If the purchase is being made outside of normal business hours, the cardholder must find an alternate purchase method in accordance with UTSA guidelines, policies and procedures, or cancel the purchase and contact the PTCA Office during normal business hours.

L. Required Documentation and Retention

The following documents must be retained by the cardholder — or the cardholder’s department if the cardholder is no longer employed by the department — for the current fiscal year plus five additional fiscal years.

These documents must be readily available for audits and reviews and must be shredded before disposal.

  • An itemized sales receipt or other acceptable form of documentation, such as a packing slip, for each Procard transaction that includes:
    • Date of purchase
    • Vendor name
    • List of each item purchased and the price of each item
  • Completed and signed Procard Transaction Log
  • Departmental controls documentation
  • ORI approval email (for international vendors only) or vendor hold check documentation if purchase exceeded $500
  • Copy of the related Citibank memo statement
  • Approved BEF if applicable. See FMOG - Business Related Hospitality and Entertainment Expenditures for more information.
  • Copy of a completed Citibank Cardholder Dispute or Declaration of Unauthorized Use form submitted to Citibank, if applicable.
1. Departmental Controls

In addition to complying with UTSA-wide requirements and restrictions, the cardholder’s department is also responsible for establishing and documenting an appropriate departmental Procard control environment including approvals, adjustments, record keeping, reporting, reconciliation, segregation of Procard duties and supervision.

Departmental control documentation must be retained with the Procard Transaction Logs, and must be readily available for audits and reviews.

For more information on internal control see the guidelines located in Financial Management Operational Guidelines – Section 1: Internal Control.

M. Procard Compliance

1. Monitoring Activities

The PTCA office utilizes management controls, management reports, and compliance audits and reviews to help ensure the appropriate use of the card.

The PTCA Office continuously monitors and reviews Procard transactions for compliance with this guideline. For more information on the PTCA monitoring process including specific reports used by PTCA, see Procard Compliance Monitoring and Reporting.

Procard activities and related controls are also subject to the requirements of FMOG - Monitoring Plan for Segregation of Duties and Reconciliation of Accounts.

Review of Procard transactions may be performed during the Quality Assurance Review (QAR) to provide management with assurance that departmental controls are in place and operating effectively.

In addition, the following individuals may review and audit Procard use for compliance with this guideline and any regulatory, statutory, specific grant, funding source, departmental or program requirements:
  • UTSA staff in the Disbursement and Travel Services office; Audit, Compliance and Risk Services; the Office of Sponsored Project Administration (OSPA); and
  • State, federal and other auditors and representatives.

2.Non-Compliance Consequences

Failure to comply with this guideline and applicable regulatory, statutory, specific grant, funding source, departmental or program requirements may result in disciplinary/corrective measures. Depending on the nature, severity and frequency of non-compliance, consequences may include notification to management, revocation of Procard privileges, termination of employment, and (in the case of fraud) criminal prosecution.

Following are examples of progressive disciplinary measures related to non-compliance (this is not an exhaustive list of violations and disciplinary measures):

Level One includes but is not limited to:
First instance of:
  • Late UTShare transaction approvals
  • Incomplete/unsigned transaction log
  • Missing itemized receipt
  • Supplier hold not checked
  • Missing ORI approval for foreign vendors
  • Texas sales tax charged

Consequence: Non-compliance notification email from PTCA to cardholder’s Department Manager and immediate supervisor.

Level Two includes but is not limited to:
First instance of:
  • Unsecured card
  • Card use shared with someone other than the cardholder
  • Restricted business/commodity
  • Payment of past due invoice with the card
  • Missing or unsigned BEF
  • Lost/stolen card not reported
  • Personal or unauthorized purchases: self-reported and resolved within statement cycle
  • Cardholder not full-time benefits eligible employee
  • Repeated findings cited in previous audit
  • No internal control questionnaire
  • Non-compliance with other university policy or procedures

Consequence: Mandatory Procard Compliance Refresher Course, non-compliance notification email from PTCA to Department Manager with copy to respective Dean/Associate Vice President and Assistant Vice President Financial Affairs/Controller (AVPFA/Controller). Special Event cardholders will also be required to retake the Business Related Hospitality and Entertainment course.

Level Three includes but is not limited to:
  • Two Level Two occurrences within a two-year period
  • Four or more Level One occurrences within a two-year period
  • First instance of:
  • Split purchase to circumvent single transaction limit
  • Personal or unauthorized purchases

Consequence: Suspension of Procard and/or Special Event privileges for ninety days, mandatory Procard Compliance and Business Related Hospitality and Entertainment training, and letter from AVPFA/Controller to respective Vice President.

Level Four includes but is not limited to:
  • Three Level Two occurrences within a two-year period
  • Two Level Three occurrences within a two-year period
  • Continued late UTShare transaction approvals after card has already been suspended.

Consequence: Cancelation of Procard, and letter from AVPFA/Controller to respective Vice President.

Level Five: Procard related fraud
Procard-related fraud is intentional misrepresentation or deception related to the use of the Procard and the reporting of Procard transactions

Consequence: Suspected fraud will be reported to UTSA and other authorities as applicable and investigated as appropriate. Consequences for fraud will vary depending on the outcome of the investigation and the nature of the offense, and may result in disciplinary measures up to and including termination of employment and criminal prosecution.

NOTE: If multiple non-compliance items are found at audit, consideration will be given to whether the cardholder had the opportunity to correct those items during the audit period and factored into the consequences.

N. Exceptions

The Assistant Controller or designee may authorize certain exceptions to the purchasing authority of the cardholder to meet specific UTSA business requirements. Examples of such exceptions may include purchases of restricted commodities or services and temporarily increasing dollar thresholds due to unusual circumstances or unexpected events. When this occurs, the cardholder receives an email authorizing the exception and such documentation must be retained in departmental files.

DEFINITIONS

Term Description
Department Manager An individual with fiscal responsibility including Monthly Financial Report reconciliation, and decision-making authority for university resources who has approval access to commit funding using the institutional financial accounting system.
Controlled Assets The Texas Comptroller of Public Accounts defines controlled items as stereo systems, cameras, video recorders/laserdisc players (TV, VCR, camcorder), desktop and portable CPUs, printers (not portable), and data projectors valued from $500 to $4.999.99. In addition, firearms are controlled assets regardless of cost. See the detailed list of controlled property class codes on the State Comptroller’s website.
Memo Statement A listing of transactions for the current billing period for an individual Procard. Memo statements do not include beginning or ending balances or prior period activity.
Merchant Category Code (MCC) MCCs are assigned by MasterCard® to classify vendors according to the primary type of commodity (goods/services) they provide. MCCs are assigned to Procards to help ensure that the cards are not used for purchases from restricted vendors.
EXAMPLE: MCC 5811 (caterers) is assigned only to Procards with Special Event privileges.

REFERENCES/LINKS

RELATED FORMS/WORKSHEETS

  1. Business Expense Form (BEF)
  2. Card Maintenance Request (CMR)
  3. Citibank Affidavit of Unauthorized Use
  4. Citibank Government Cards Cardholder Dispute Form
  5. Procard Application and Agreement
  6. Procard Transaction Log
  7. Tax Exempt Certificate

REVISION HISTORY

Date Description
09/18/17 Added cellular phones and services to Restricted Commodities in Section C.
04/07/16 Updated section ’G’ International Transactions with updated ORI link and email address.
02/03/15 Updated Defintions section with new State Comptroller’s website.
01/15/15 Update Class name "PS 208.01 - Procard Processing using UTShare/PeopleSoft" with "AM 562 - Procard Compliance and Processing using UTShare/PeopleSoft."
01/09/15 Updated dead links in FMOG.
01/05/15 Updated section on Procard reconciliation and payment process.
11/04/14 Updated section on Procard reconciliation and payment process.
06/19/14 Updated DEFINE information for transition to PeopleSoft.

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Operational Guidelines