Procurement Card Office
Procard Information
- Overview
- Purpose
- Introduction
- Benefits
- Parties Involved
- Responsibilities
- Obtaining a Procard
- Procard Transactions
- Unauthorized Use
- Placing an Order
1. Overview
The Purchasing & Distributions Services Department is delighted to offer to The University of Texas at San Antonio community an exciting, innovative program that allows direct purchases (less than $5000.00) by using a Procurement Card (Procard). All transactions conducted with use of the Procard must benefit and support the University’s mission of education, research, and public service. The Procard is a privilege granted to you by the University.
2. Purpose
The purpose of this guide is to establish policies and procedures under which departments of The University of Texas at San Antonio must control the use of Procards issued to their authorized employees to purchase commodities on behalf of the University. This guide specifically governs purchases made using the Procard and is intended to accomplish the following:
- Ensure purchases made with the Procard are accomplished in accordance with the policies and procedures established by the University of Texas Purchasing & Distributions Services Department and the regulations of the State of Texas.
- Ensure appropriate internal controls are established within each department utilizing Procards.
- Ensure the University bears no legal liability for inappropriate use of Procards.
3. Introduction
The Procard Program is designed to allow you, the Cardholder, to handle authorized purchases up to $5000.00 including freight without delays or paperwork that can accompany larger transactions. These Cardholder Guidelines were developed to assist you in better understanding the program.
For every purchase that is made using the Procard, the processing time and effort put forth to pay for that order individually is reduced. As participants in this Procard Program, you are part of an ongoing effort to meet the goals of reduced administrative costs for the purchasing of commodities, increased customer service, and establishing appropriate oversight for differing types of purchasing. You can help the University achieve the goals by using the Procard in accordance with the Guidelines, and by encouraging participation in the Program, among both employees and Vendors.
4. Benefits
4.1 Cardholder
Departments will receive bank billing statement each month for every Cardholder in lieu of invoices from each Vendor with whom an order has been placed. The Procard will significantly reduce the workload and processing costs related to the purchase and payment of commodities and services. The delivery can be made directly to the department.
4.2 University
The University of Texas at San Antonio utilizes a Procard to control, manage, and reduce processing costs at all levels by reducing the number of invoices and checks processed while empowering the individual to make purchases and allocate expenses as needed.
4.3 Vendor
Vendors who accept credit cards will welcome The Procard. When they accept the Procard for business purchases, Vendors need not send invoices to the University, and they will receive payment directly from the Bank within 24-48 hours of the transaction.
5. Parties Involved
5.1 Card Issuer (Bank)
Bank services include issuing the Procards to the Procard Administrator, providing electronic transaction authorizations, and billing the University for all purchases made on the Procard.
5.2 Purchasing & Distributions Services Department
The area responsible for arranging with the Bank to have Procards issued. This department oversees the activities of the Purchasing Office, Procard Administration, HUB Office, Mail Services, and Central Receiving.
5.3 Department Head (or Dean)
The University official who must approve the designated employee’s request for a Procard, assign a Departmental Reviewer/Approver, and designate a default accounting code for purchases on the Procard. Department Head approval delegates transaction authority to the Cardholder. The Department Head reviews and validates the employee Procard Application.
5.4 Department Reviewer/Approver
An employee in each department designated by the Department Head to assess the Cardholder transactions and approve the University Voucher Payment (VP7) documents assuring that they are classified appropriately and reconciled to the monthly Bank billing statements. Additionally, the Reviewer/Approver should monitor the transactions to ensure they are legitimate business expenses.
5.5 Procard Administrator
The Procard Administrator, located in the University’s Purchasing & Distributions Services Department, is considered the one-stop contact responsible for coordinating the Procard activities with the University Cardholder, Disbursements Administrator, Internal Audit, and Budget Office (DEFINE Administration). Requests for a Special Event Card will be coordinated with the Associate Vice President For Financial Affairs. Responsibilities also include acting as the organization’s intermediary in correspondence with the Card Issuer and conducting Procard compliance monitoring, reporting, and assessment functions.
5.6 Disbursements Administrator
The central accounts payable administrator who is responsible for receiving and reviewing the Bank billing statement, distributing monthly reports to Cardholders and Reviewer/Approvers and notifying them of cut-off dates for approvals and default code changes.
5.7 Cardholder
An employee who is approved by the Department Head to use the Procard to execute purchase transactions on behalf of the University (make the buy), reconcile the monthly transactions to the Bank billing statement, and maintains the Procard documentation to support each transaction.
5.8 Vendor
The Vendor from whom a Cardholder is making a purchase.
6. Responsibilities
6.1 Cardholder
The Procard may not be used for lodging and meals while on business travel, entertainment, cash, services, repairs, and other categories as included in the list of Procard Restrictions (Attachment IV). The Cardholder must:
- Keep Procard in their possession, not allow anyone else to use the Procard issued in their name.
- Ensure the Procard is used for legitimate University business purposes only.
- Maintain the Procard in a secure location at all times.
- Adhere to the purchase limits and restrictions of the Procard and ensure the total transaction amount of any single transaction does not exceed $5000.00 including freight.
- Verify whether or not a Vendor is on warrant hold with the State Comptroller’s Office at the following web site: Certification of Account Status Corporation Search. (Required to check Vendor Status once a week on orders of $150.00 or more)
- Complete the Procard Transaction Log (Attachment III) itemizing commodities and services.
- Obtain all sales slips, register receipts, and/or Procard slips and provide them to the Reviewer/Approver for approval and allocation of transactions.
- Notify Reviewer/Approver if the default accounting code should be changed.
- Attempt to resolve disputes or billing errors directly with the Vendor and notify the Bank if the dispute or billing error is not satisfactorily resolved, also notify the Procard Administrator.
- Ensure that an appropriate credit for the reported disputed item or billing error appears on a subsequent Bank billing statement.
- Ensure that tax has not been charged.
- Not accept cash instead of a credit to the Procard account.
- Immediately report a lost or stolen card to the Bank.
- Immediately notify Reviewer/Approver of a lost or stolen Procard at the first opportunity during normal business hours.
- Return the Procard to Department Head upon terminating employment with the University or transferring between departments and notify the Procard Office. .
- Contact the Department Reviewer/Approver if a Vendor does not accept the Procard.
- Report erroneous and emergency transaction needs to the Reviewer/Approver during normal business hours.
- Strive to meet or exceed the University's goal with Historically Underutilized Businesses (HUB). If you cannot locate a HUB, contact the HUB coordinator at 458-4068.
- Ensure records are retained for a period of not less then five years.
- Validate that the merchandise is received in accordance with section 10.4 of these Procard Guidelines.
6.2 Department Reviewer/Approver
Each Department Head must designate one or more Department Reviewer/Approvers for their Cardholders. The Department Reviewer/Approver is to receive training similar to that of the Cardholder. Responsibilities include:
- Reviewing Vendor receipts attached to the Bank billing statement for inappropriate purchases or uses of the Procard and to ensure that taxes have not been charged.
- Approving reconciliation of charges to Bank billing statement.
- Resolving disputes with the Vendor or Bank not resolved by the Cardholder.
- Notifying the Procard Administrator in 3 to 5 days of any unresolved disputes.
- Notifying the Procard Administrator of lost or stolen cards
- Requesting the Procard Administrator cancel a Procard (e.g. terminated employees, employees transferring to other departments, and loss of Procard privileges) as approved by the Department Head.
- Collecting canceled Procard and forwarding to the Procard Administrator.
- Assisting Cardholder with declined and emergency transactions.
- Reporting misuse and abuse of the Procard.
6.3 Procard Administrator
The Procard Administrator is located in the Purchasing & Distributions Services Department and is responsible for the following:
- The University’s liaison with the Bank.
- Processing the Cardholder Application (Attachment I).
- Coordinating Cardholder Application financial information with Budget Office (DEFINE Administration) and the Disbursements Administrator.
- Submitting a completed Procard Application to Bank and receiving the Procard.
- Training Department Reviewer/Approver before releasing Procards to Cardholders.
- Training Cardholders before releasing Procards.
- Facilitating the execution of the Cardholder Agreement (Attachment II).
- Assisting with disputed charges/discrepancies.
- Securing revoked or cancelled Procards and submitting information to the Bank.
- Reviewing Bank billing statement for inappropriate purchases or Procard uses.
- Monitoring, reporting, and assessing Procard transactions for compliance.
- Coordinating Cardholder changes, i.e. updates to MCC’s , threshold limits, etc.
- Maintaining and updating Procard Guidelines.
6.4 Disbursements Administrator
The Procard official for the Disbursements Office is responsible for the following:
- Receiving and reviewing the Bank billing statement
- Distributing reports to Cardholders and identifying cut-off dates for approvals.
- Preparing Bank billing statement for ACH payment.
- Reconciling Bank billing statement to Bank electronic file and to the transaction totals posted to the University accounting system.
7. Obtaining a Procard
7.1 General
For the purposes of efficiency in administration and management, only approved and trained Cardholders are authorized to execute the purchase of materials, supplies, and non-capital equipment direct from a Vendor when the total dollar value of the purchase is $5000.00 or less including freight. The Cardholder does not have to contact the Purchasing Office before placing an order using the Procard for these purchases. All University policies and procedures for the expenditure of funds must be followed. A Cardholder may acquire commodities and services with the use of a purchase order (when the Procard is not applicable) by submitting a requisition to the University Purchasing Office.
7.2 Cardholder Eligibility
Prior to receiving a Procard, the applicant must:
- Become an employee of the University;
- Obtain approval from the Department Head;
- Identify a Reviewer/Approver (other than the Cardholder);
- Attend training on Procard Guidelines;
- Complete a signed Cardholder Agreement (Attachment II).
7.3 Cardholder Liability
The Procard is a corporate charge card, which will not affect the Cardholder’s personal credit; however, it is the Cardholder’s responsibility to ensure that the Procard is used within the Procard Guidelines as well as those policies and procedures relating to the expenditure of University funds. Failure to comply with said guidelines may result in permanent revocation of the Procard, notification of the situation to management, and further disciplinary measures that may include termination.
7.4 Applying For A Procard
- The Department Head recommends approval for a Procard.
- After becoming familiar with the Procard Guidelines, the prospective Cardholder submits a completed and signed Cardholder Application to the Procard Administrator.
- The Department Head or individual with budgetary responsibility for the accounts will determine the monthly purchase limit for the Cardholder (or be set at $10,000). In no event may the purchase limit of a single transaction exceed $5000.00 including freight. The Cardholder monthly purchase limit (threshold) as noted on the Cardholder Application should be carefully decided according to the funding source or contract associated with the Procard. The Cardholder Application can be used to facilitate any requested changes.
- The Employee and Department Head must sign the Cardholder Application and Agreement.
- The Department Head verifies the information and forwards the signed and approved Cardholder Application and Cardholder Agreement to the Procard Administrator in the Purchasing & Distributions Services Department.
- The Procard Administrator will review the Cardholder Application and attempt to resolve any discrepancies or transmit the completed form to the Bank.
- The Procard will be delivered to the Procard Administrator. Upon completion of the Procard training, the Cardholder will be asked to sign the Cardholder Agreement (Attachment II) prior to receiving the Procard. The Procard cannot be distributed to anyone other than the named Cardholder.
IMPORTANT NOTICE: Cardholders are authorized to purchase commodities and services as a function of their duties at the University with exception to those items specified in the Procard Restrictions. Due to University contracts, policies, or legal requirements, the use of the Procard for the acquisition of these commodities and services will be limited. Requirements for such items must be purchased using other more appropriate purchasing means. Please contact the Procard Administrator for additional information regarding the purchase of those commodities and services specified in the Procard Restrictions (Attachment IV).
7.5 Special Event Card
The purpose of the Special Event Card is to allow authorized employees to purchase commodities that are restricted under the Procard. Although use of the Special Event Card is monitored more closely, it gives Cardholders more flexibility in the types of purchases they make. Special event cards are only issued to a small number of authorized staff.
To receive a Special Event Card, the Department Head must complete a Procard Application, requesting changes for the existing Cardholder, and forward it to the Procard Administrator. Approval of the Special Event Procard will be at the discretion of the Associate Vice President for Financial Affairs.
7.6 Cardholder Purchase Limits
Cardholder monthly purchase limits as noted on the Cardholder Application (Attachment I) should be carefully decided according to the business needs of the department (see 7.4 Applying for a Procard). Cardholders who wish to change the monthly purchase limits (once a Procard is issued) may do so by submitting a request in writing to the Procard Administrator. Each purchase transaction must not exceed $5000.00 including freight charges. Cardholders must not intentionally split purchases over time, over sources (Vendors), or split purchases based on different project or program numbers, different recipients, or differing functionality of items with the intent to circumvent the Cardholder’s delegated authority or transaction limit.
7.7 Card Security
The individual’s name that appears on the Procard bears the responsibility for all purchases made with that particular Procard. Only that Cardholder whose name is embossed on the Procard is authorized to use said Procard. Sharing a Procard or card number is a very high-risk practice that should not be done. Under no circumstances should any University employee be allowed to purchase commodities or services with the use of another’s Procard. The Procards should be stored in a secure place within the department. The Procard account number should be protected as any blanket or department purchase order number would be.
7.8 Lost, Misplaced or Stolen Procards
The Cardholders are required to immediately report a lost or stolen Procard to the Bank toll-free at 1-800-890-0669. The Cardholder must also immediately notify the Reviewer/Approver about the lost or stolen card at the first opportunity during normal business hours.
7.9 Termination of Procard Privileges
The Cardholder may cancel a Procard at anytime and without cause. The Procard Administrator is required to close an account if a Cardholder: (a) transfers to a different department, (b) moves to a new job in which a Procard is not required; (c) terminates employment or (d) for any of the following reasons which may also subject Cardholder to disciplinary action in accordance with University policies and procedures relating to disciplinary action and termination for cause:
- The Procard is used for personal or unauthorized purposes.
- The Procard is not used during a period of three (3) consecutive months.
- The Procard is used to purchase alcoholic beverages or any substance, material, or service which violates policy, law or regulation pertaining to the University of Texas at San Antonio.
- The Cardholder splits a purchase to circumvent the limitations of the Procard.
8. Procard Transactions
8.1 General
Determine whether the Procard is the most appropriate process to use for the purchase:
- Check the list of Procard Restrictions (Attachment IV) to make sure it is not a restricted item.
- Identify whether a State or University contract is available that is applicable to your purchase. (Contract information is available by calling a Buyer in the Purchasing &
- Distributions Services Department.)
- Determine if the intended transaction will be $5000.00 or less including freight and does not exceed your monthly-authorized Procard transaction limit.
8.2 Billing, Payment, and Account Distribution
The Bank usually pays the Vendor within 24-48 hours of your order. The Bank will mail one summary billing to the University Disbursements Office listing all transactions during that period by Cardholder. The summary billing matches the total of all the Procurement Card activity statements which you receive each month. The Disbursements Office will electronically pay the summary billing in full and distribute the charges to your account based upon each pre-assigned unique account number.
At the time an employee applies for a Procard, the employee will indicate to which account the charges will be posted. This is the account number that appears on the University Voucher Payment (VP7) document. When the VP7 is reviewed and reconciled to the Procard Transaction Log, the account number may be changed. If there are insufficient funds in the account, the VP7 cannot be approved and the department must assign a new account number.
The Disbursements Office will transmit the VP7 electronic document on a monthly billing cycle to the Reviewer/Approver. A notification will be transmitted via TXMAIL when the VP7 is available for review. The message will give a deadline by which the VP7 should be approved. If not approved by the deadline, the VP7 will automatically route back to the Disbursements Office for review.
The Reviewer/Approver is responsible for ensuring that funds are available in the account to process payment and approving the VP7. The Procard documentation (card billing statement and receipts) is to be maintained within the department. It is the responsibility of the individual Cardholder, Reviewer/Approver, and ultimately the Department Head, to ensure the VP7 documents receive final approval and have been appropriately reconciled by the deadline.
9. Unauthorized Use
The Procard must never be used to purchase items for personal use or for non-University purposes even if the Cardholder intends to reimburse the University. A Cardholder who makes an unauthorized purchase with the Procard or uses the Procard in an inappropriate manner will be subject to disciplinary action including possible card cancellation, termination of employment and criminal prosecution. Examples where clarification of University specific policies may need to be confirmed with the Procard Administrator are gifts, flowers, memberships, alcohol, contributions, incentives, food, restaurants, and catering services (on and off campus).
10. Placing an Order
10.1 Engage The Vendor
Practice sound business judgment in purchasing with the Procard, seek fair and competitive pricing to the maximum extent practical, and arrange to:
- Determine the quantity and description to be ordered and pricing for each.
- Call, visit or fax the Vendor that you selected to place your order.
- Identify yourself as a University employee. State that you are making a tax-exempt purchase using a Procard. For in-store purchases, present the Vendor with the Procard. For telephone or fax orders, state the cardholder name, Procard account number and expiration date.
10.2 Billing Instructions
When you place a Procard order, provide your department address to the Vendor as the billing address. Emphasize to the Vendor that the invoice copy is to be included with the shipment or mailed to YOUR billing address, not to the University's Accounts Payable Office, as follows:
University of Texas at San Antonio
[Department Name]
Attn: ______
Procard Order
[Department Address (building name and room number)]
San Antonio, Texas [zipcode]
10.3 Shipping Instructions
It is very important to provide clear and specific shipping and mailing instructions to the Vendor to ensure receipt of your order, i.e. inside delivery, etc. Always ask how the order will be shipped. All orders transported by Vendor truck or freight line can be delivered directly to the ordering department and should be addressed as follows:
University of Texas at San Antonio
[Department Name]
Attn: ______
Procard Order
[Department Address (building name and room number)]
San Antonio, Texas [zipcode]
Orders that will be transported by all other carriers (UPS or FedEx) must be delivered to Central Receiving and should be addressed as follows:
University of Texas at San Antonio
[Department Name]
Attn: ______
Procard Order
[Department Address (building name and room number)]
San Antonio, Texas [zipcode]
10.4 Receiving Your Shipment
- Open and inspect all shipments promptly.
- Make sure the Vendor correctly filled your order and that all items are in good condition. Verify that you have received all of the items in the quantities specified on your Procard receipt or priced packing list.
- Verify that sales tax was not charged. The University is not liable for sales tax in the state of Texas. Sales tax charges are to be monitored and questioned.
- Save the Procard sales slip, itemized receipt, or priced packing list, and shipping documents.
- Retain boxes, containers, special packaging, packing slips, etc. until you are certain you are going to keep the goods. Most items cannot be returned without the original packing materials. Also, most Vendors have a thirty-day return policy. After that period, you may not be able to return your items or you may be charged a restocking fee.
- Forward the required documentation to the Reviewer/Approver.
10.5 Returns, Damaged Goods, Credits
The Cardholder is responsible for working with the Vendor for the return of incorrect, duplicate, or damaged merchandise purchased with a Procard:
- Read all enclosed instructions carefully. Often a customer service telephone number and other instructions are included on the packing slip and/or receipt for returns.
- Many Vendors require a "Return Authorization Number" or “Return Service Authorization” before they will accept a return. If you neglect to acquire this return authorization from the Vendor when it is required, the package may be refused and/or no credit issued to your account.
- In some cases, there may be a restocking fee. If the Vendor is responsible for the error or problem, you should not have to pay this or any other fee. However, if they are not responsible you may have to pay it.
10.6 Acceptable Documentation
Each transaction on the Procard must be represented by an itemized receipt or other acceptable forms of documentation that verifies the date of purchase, the Vendor or Vendor name, each item purchased and the price of each item. For record keeping purposes, the following items should be maintained:
- Sales receipts
- Packing slips
- Procard charge slips
- Merchandise advertisements
10.7 Disputed Transactions
If there is a discrepancy on the Procard monthly billing statement, you should first contact the Vendor to try to resolve the problem. If it is resolved, verify that the correction has been made when the next statement arrives. If the matter cannot be resolved with the Vendor, contact the Bank at 1-800-890-0669 directly or call the Procard Administrator for assistance. You may be asked to submit information in writing.
Vendors are paid within 24-48 hours of submitting the Procard transaction data to the Bank, while the University pays the Bank for all ProCard purchases once every 30 days. There may be situations when a Vendor receives a transaction-declined message at the point of sale when processing your Procard transaction. If you do not know the reason for the decline, contact the Vendor or call the Bank at 1-800-890-0669 for an explanation. If the decline was in error, the Cardholder should immediately contact the Procard Administrator for assistance. If the purchase is being made outside of normal business hours, the employee must find an alternate payment method or cancel the purchase and contact the Procard Administrator during normal hours.
10.8 Review and Audit
The University’s Procard program relies on both internal management controls and management reports designed to ensure the proper use of Procards. The Purchasing & Distributions Services Department, Disbursements Office, and the Office of Internal Audit may periodically review and audit Procard use for compliance with University policies and procedures and state law. The purpose of these audits will be to ensure that the Cardholders are adhering to these Guidelines. Audit steps will include but not be limited to:
- Reviewing to ensure that the Procard is being used for authorized purchases related to University business.
- Review of the charges is being performed.
- Proper support documentation (receipts, packing slips, pricing, etc.) is maintained to support the Procard transactions.
- Timely reconciliation of the Cardholder account is performed between the goods received and the charges reported on the Bank billing statement.
- The Cardholder forwards supporting documentation and VP7 document to the reviewer and approver in a timely fashion.
10.9 Department Control Environment
Other information related to the purchase:
- When an itemized receipt is not available, itemized supporting documentation must be secured. In many cases, when placing orders by telephone or fax, the packing slip may provide the itemization needed.
- Each department will be required to maintain a file of all documentation associated with Procard activity.
- Each department is responsible for establishing an appropriate internal control environment for University Procard responsibilities, including approvals, audit ability, adjustments, record keeping, reporting, reconciliation, segregation of Procard duties and supervision.
10.10 Exceptions
The University of Texas at San Antonio may delegate certain exceptions to the purchasing responsibility to the Cardholder in order to meet specific University business requirements. Examples of such delegation are purchases of Restricted Commodities or Services and raising dollar thresholds enabling the purchase of commodities or services due to unusual circumstances or unexpected emergencies (i.e., weather related). Please forward all requests to our Procard Office for consideration.
In all situations, the Cardholder must:
- Obtain prior written approval from the Department Head and submit a request to the Director of Purchasing & Distributions Services (soon after the emergency purchase is made);
- Adhere to applicable Procard Guidelines and the UTSA Purchasing Policies and Procedures governing the purchase of Commodities and Services.