UCIT Pcard Procedures
UCIT Pcard Procedures
Table of Contents
1
2
3
4
5
6
Introduction
1.1
Regulations and Approval Thresholds
1.2
Administration of the Pcard Program and Compliance
1.3
Vendor Agreements
1.4
UCIT Business Office Responsibilities
1.5
UCIT Area Managers Responsibilities
1.6
Cardholder Responsibilities
Cardholder Procedures
2.1
Obtaining a Pcard
2.2
When to use a Pcard
2.3
Obtaining Required Documentation
2.4
Bank Statements and Verification of Charges
2.5
Emergency Situations
2.6
Contractors and Temporary Employees
2.7
Ethics
2.8
Reallocation of Charges
Card Verifier Procedures
3.1
Definition
3.2
Verification of Statements
3.3
Questionable Purchases or Insufficient Documentation
3.4
Forwarding of Verified Statement
3.5
Ethics
Account Allocator Procedures
4.1
Deciding Whether to Have a Separate Allocator
4.2
Allocation Process
Independent Reviewer (UCIT Business Office) Procedures
5.1
Maintenance of Records
5.2
Business Office Review and Auditing of Pcards
5.3
Other Audits
5.4
Reporting Misuse and Examples of Issues For Action
5.5
Monthly Reports For Cardholders
5.6
Reports and Analysis of Pcard Use
Additional Resources
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1 Introduction
1.1 Procurement card (Pcard) processes are controlled by requirements and
regulations set forth by the Board of Trustees and the university’s
Administration & Finance Division.
1.1.1
Board Rule 3361:20-23-02 regulates purchases, contracts and competitive bidding. It
provides Central Purchasing with the authority to make purchases for the university,
make use of various existing contracts established by other agencies and consortia,
and create operational purchasing procedures for the university.
1.1.2
Central Purchasing delegates the ability to make minor purchases to university units,
generally $500 or less. There are also some higher limits via a pcard which are
delegated to certain individuals, usually an administrator or manager, and generally
for specific types of purchases as well as emergency needs to avert failure of mission
critical processes/systems. Requests for higher purchase authority are reviewed on
a case by case basis.
1.1.3
If a vendor agreement needs to be signed, a pcard cannot be used for the purchase.
General Counsel must sign any vendor agreement and an A910 must be completed for
routing purposes. Therefore a purchase involving a vendor agreement must be
processed through the UCIT Business Office and Central Purchasing.
1.2 Administration and Finance Division, Central Purchasing and Accounts
Payable are responsible for administering the Pcard program, for setting
policies and making sure requirements and regulations are met, as well
as providing general procedures and guidance to university units. All
university units are expected to comply with these when making
purchases. Further information can be obtained from the Central
Purchasing website at http://www.uc.edu/purchasing . The Pcard
Manual contains primary information and is located on their website at
http://www.uc.edu/content/dam/uc/af/purchasing/docs/PCARDManual
.pdf . Central Purchasing is also responsible for periodic audits of
university units to ensure pcard compliance.
1.3 General Counsel is responsible for reviewing, making changes to, and
signing vendor agreements. UCIT staff should never sign a vendor’s
contract/agreement document, or verbally commit to any agreement
with a vendor. A pcard cannot be used to make a purchase where the
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vendor requires the university to sign an agreement, digitally or
otherwise.
1.4 UCIT Business Office is responsible for tracking, reviewing and auditing
pcard purchases made by UCIT staff. This involves monthly auditing of
theses pcard purchases. If the employee is in the business office, then the
review should be performed by a staff member that does not report to
them.
1.5 UCIT Area Managers are responsible for verifying and approving
purchases made by their direct reports and ensuring that the monthly
statements and all proper documentation get forwarded to the UCIT
Business Office. They may delegate this process to another individual
that reports to them; however this individual cannot verify purchases
made by someone to whom they report.
1.6 UCIT staff cardholders are responsible for making proper use of a pcard
and obtaining all necessary documentation. They must familiarize
themselves with what is and what is not appropriate use of the pcard.
Procedures outlined in this document do not replace or supersede any
procedures or policies set forth by the Administration and Finance
Division or the Central Purchasing Department. It is the cardholder’s
responsibility for familiarizing themselves with those.
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2 Cardholder Procedures
2.1 Obtaining a pcard
2.1.1
If a staff member is making small ad hoc purchases on a regular basis, travel
regularly, or has a need to make emergency purchases after regular hours, they
should submit a request to their manager to have a card issued to them. To do so, the
employee needs to complete and sign a “Cardholder Set-Up Form” and a “Cardholder
Agreement Form” available on the Central Purchasing website. They then need to
forward these in an email to their manager for approval, explaining in the email why
they feel they need a card. After approving, the manager will forward these to the
Executive Director of Business Affairs.
2.1.1.1 If travel privileges are being requested for the card, the staff member must
complete the “Account Maintenance Form” from the Central Purchasing website and
include that in their email as well.
2.1.2
Once the forms are approved by the manager and Executive Director of Business
Affairs, the forms are returned to the staff member who will forward them to the
Pcard Program Administrator in Central Purchasing.
2.1.3
After processing the pcard request, the Pcard Program Administrator sends a notice
to the staff member instructing them to complete an on-line pcard training session
prior to the card being issued.
2.1.3.1 The staff member should also read the entire “Purchasing Card Policies and
Procedures Manual” on the Central Purchasing website and the “Procurement Card
Violations” policy on the Administration and Finance website to familiarize
themselves with correct policies and procedures. They should maintain a link to
these documents in their web browser for quick reference when making a pcard
purchase. The same is true for the “UCIT Pcard Procedures”
2.1.4
Cardholders must sign and submit the statement of understanding attached at the
end of this policy.
2.2 When to Use a Pcard
2.2.1
Use the pcard for ad hoc purchases that are within the dollar limit imposed on the
pcard and that are not restricted. Purchase restrictions are listed under
“Unauthorized Card Use” in the “Purchasing Card Policies and Procedures Manual” on
the Central Purchasing website. Except in cases where a dire emergency exists to
keep mission critical operations going, purchases larger than $500 should be
avoided, even if your card’s transactional limit is higher. Larger purchases should be
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processed using the regular purchasing process through the Business Office and
Central Purchasing.
2.2.2
Never use the pcard to make personal purchases. Store the card in the provided
sleeve to avoid accidental use. In the event of accidental use, the cardholder should
immediately email their manager explaining what happened, copying the Pcard
Program Administrator in Central Purchasing, and provide a personal check to the
UCIT Business Office to reimburse the university for the entire amount of the
purchase.
2.2.3
Note that pyramiding charges (use of multiple transactions to circumvent pertransaction limits) is prohibited.
2.2.4
Special restrictions and exceptions exist for software purchases. Refer to the
“Purchasing Card Policies and Procedures Manual” on Central Purchasing’s website.
2.2.5
The cardholder is accountable for all charges made with that card. Protect it as you
would your own personal credit card. If the card is lost or stolen, you are responsible
for immediately reporting that to the Pcard Program Administrator, so the card can
be cancelled and a new one issued. Outside of business hours, phone the bank to
report.
2.2.6
Consequences for intentional misuse of the pcard can include but are not limited to
disciplinary action, dismissal, and criminal prosecution.
2.3 Obtaining Required Documentation
2.3.1
Detailed original itemized receipts are required for any pcard purchases. All items
purchased must be stated clearly on the receipt along with the price. This pertains to
on-line purchases as well as phone or store purchases. If an itemized receipt is not
automatically provided, make sure to request one from the vendor. In the event the
vendor will not provide one, make the purchase from another vendor.
2.3.2
For on-line purchases, make sure that the vendor provides a printable receipt.
Otherwise contact the vendor to mail a receipt. Also provide a screen print from the
website of the types of items purchased and the dollar amount.
2.3.3
Food or meal receipts must also be itemized. Note that alcoholic beverages are not
permitted for pcard purchases. When submitting food/meal receipts, include a note
with the names of the individuals attending as well as the purpose of the
meeting/function. The cardholder must adhere to the Administration and Finance
Financial Policies set forth in Meal Expenses 2.1.4.
2.3.4
For receipts that are not provided on an 8.5 X 11 piece of paper, tape it to that size
sheet of plain paper when submitting to allow for easier maintenance of required
files.
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2.4 Bank Statements and Verification of Charges
2.4.1
Once the cardholder receives their monthly bank statement, the cardholder should
verify the charges against receipts and sign the statement. The cardholder should
notify the UCIT Business Office by email if they have not received a bank statement
but have used their Pcard during the cycle.
2.4.2
The cardholder should organize the receipts in the same order as the charges are
listed on the statement and attach them to the statement with a paperclip.
2.4.3
The cardholder should forward the statement, the monthly transaction log, the
attached receipts, and any other supporting documentation to the cardholder’s
verifier.
2.5 Emergency Situations
2.5.1
For dire emergency situations involving purchases over the cardholder’s transaction
limit, the cardholder should contact the UCIT Business Office immediately to enter a
confirming requisition into UC Flex. The cardholder will need to provide an email to
the Business Office explaining the nature of the emergency and the consequences if
the merchandise or service is not obtained immediately, attaching a completed UCIT
Purchase Request Form. The Business Office will contact Central Purchasing to
process the requisition immediately and to fax the order to the vendor. The Business
Office in turn will provide the order number to the cardholder so they can make
appropriate arrangements for delivery by the vendor.
2.5.2
If the emergency happens before/after normal business hours, a pcard can be used.
However since a cardholder may have a smaller maximum transaction limit, they
should contact their manager to make the purchases above the cardholder’s limit by
using a higher dollar transaction pcard. If the manager does not have one or the
purchase amount is higher than their own card allows, the manager should contact
the Executive Director of Business Affairs who should have access to a card with a
higher limit.
2.6 Contractors and Temporary Employees
2.6.1
Generally speaking, contractors and temporary employees should not be issued
pcards.
2.7 Ethics
2.7.1
When working with vendors on a purchase or you are responsible for making an
award recommendation as a result of a bid, and you have any kind of direct financial
interest in a company, or a relative is in a controlling position at the company,
disclose that to the manager to whom you report, and ask that someone else in your
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area handle the purchase. While there may not be any intention of impropriety, it is
best to avoid any suspicion.
2.7.2
Do not accept any gifts from vendors, even during the holidays. If a sales rep invites
you to a lunch and they offer to pay, let them know that while you appreciate the
gesture, that you as a public employee cannot accept, and must pay for your own
meal. Accepting a gift or lunch could be construed as an attempt to sway your
purchase decision.
2.8 Reallocation of Charges
2.8.1
All card transactions from the bank get charged back to a university account. When a
card is issued, a default university account is setup for all charges made with that
card to be placed against initially.
2.8.2
When using the card, the cardholder or their assigned account allocator must
reallocate the charge to an appropriate university account (including the correct GL
account) unless the default account is correct. This is done through the UC Flex
system and should be performed by the cardholder or their assigned allocator prior
to the cutoff date stated in the monthly email notification from Accounts Payable.
2.8.3
Cardholders or their account allocator should make sure to always use a proper G/L
and not the default one. A complete listing is available at
https://www.uc.edu/ucflex/documents/GLAccounts06-30-2005.xls . G/Ls for
purchases begin with 53 and those most frequently used by UCIT begin with 530 and
531.
2.8.4
The cardholder or their account allocator should ask their manager or the Business
Office if unsure of the proper account.
2.8.5
When entering allocations, write the UC Flex document number on the statement for
future reference.
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3 Card Verifier Procedures
3.1 A supervisor, manager, or a director should be appointed to be a verifier
for each cardholder. They must familiarize themselves with these
procedures, the “Purchasing Card Policies and Procedures Manual” on the
Central Purchasing website and the “Procurement Card Violations” policy
on the Administration and Finance website.
3.1.1
Card verifiers must sign and submit the statement of understanding attached at the
end of this policy.
3.2 The card verifier receives the monthly statement and receipts from the
cardholder, then verifies purchases are appropriate, and signs the
monthly statement to attest to the validity of the purchases.
3.3 If there is a questionable purchase or insufficient documentation, the
card verifier should request an explanation in writing from the
cardholder.
3.3.1
If the explanation is sufficiently reasonable, then the card verifier should sign the
statement and attach the explanation.
3.3.2
If the explanation is not valid, the card verifier should report the incident to their
manager and to the UCIT Business Office. Then make a note on the statement
indicating which charges aren’t acceptable, sign and attach a note to the statement as
to the course of action taken as well as the explanation from the user.
3.4 The card verifier should send the statement and all attached
documentation to the UCIT Business Office (Independent Reviewer) for
record maintenance, investigation of questionable charges, and audit
purposes. The statement and documentation must be received by the
UCIT Business Office within 45 days of the statement date, otherwise
disciplinary action including withdrawal of pcard privileges could result.
3.5 Ethics—refer to section 2.7 above.
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4 Account Allocator Procedures
4.1 If a cardholder’s purchases are infrequent, it may be necessary to assign
an account allocator for them instead of expecting them to learn the
process in UC Flex and remember after long periods of inactivity. The
assigned allocator could be someone else in their area that has UC Flex
access such as the card verifier or the UCIT Business Office.
4.2 The account allocator should follow the same procedures as the
cardholder does if they are their own allocator (refer to section 2.8
above). They must familiarize themselves with the “UCIT Pcard
Procedures”, the “Purchasing Card Policies and Procedures Manual” on the
Central Purchasing website and the “Procurement Card Violations” policy
on the Administration and Finance website
4.2.1
Account Allocators must sign and submit the statement of understanding attached at
the end of this policy.
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5 Independent Reviewer (UCIT Business Office) Procedures
5.1 The Business Office is to centrally maintain the following information:
5.1.1
a list of all cardholders, their pcard number, their default accounts, their allocators,
their per transaction dollar limit, and their total monthly dollar limit
5.1.2
records of statements and attached documentation for all cardholders
5.2 Monthly reviews/audits of all statements should be performed by the
Business Office.
5.2.1
Review/audit should include examination of the following:
5.2.1.1 The statement was signed by both the cardholder and the card verifier (usually their
manager).
5.2.1.2 All items on the statement have a corresponding original itemized receipt which
adheres to the Pcard policy.
5.2.1.3 All items match the billing statement, i.e. date, item description, and total amount.
5.2.1.4 A travel authorization form was submitted and approved for a trip when travel
related items appear on the statement.
5.2.1.5 A document explaining the purpose of a meal and the attendees must be provided for
meal expenses.
5.2.1.6 Sales tax was not charged.
5.2.1.7 Credits that appear on the statement have documentation regarding the refund.
5.2.1.8 The completed cardholder’s monthly transaction log has been provided.
5.2.2
Each statement is signed by the Business Office reviewer showing that it has been
reviewed/audited.
5.2.3
Files of statements and documentation are maintained first by the individual’s name
and then by month.
5.2.4
Maintain a spreadsheet for each fiscal year of all cardholders with columns for each
month. As each cardholder’s statement is reviewed, enter the date of the
review/audit
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5.2.4.1 Periodically review the spreadsheet for monthly reviews that were not completed due
to statements not being submitted. Contact the cardholder and the cardholder
reviewer for any missing statements and related documentation.
5.2.5
If anything required is missing, there is a discrepancy, or there is some other issue,
the Business Office contacts the cardholder and works with them to resolve the
problem in a timely manner.
5.3 If an outside audit is performed for UCIT cardholders, requests can be
made for original bank statements, receipts and other documentation.
5.3.1
Audits are performed periodically by the Provost’s Office, the Pcard Administrator, or
the university’s Internal Audit Office)
5.3.2
Copies of all documents released should be made and retained in place of the
originals for future reference.
5.3.3
Notations should be made on the copies as to why the originals have been removed
from the files, to whom they were sent, and the date sent.
5.4 Upon misuse of a card or when lack of documentation of the purchase
occurs, and it is determined that the issue is egregious and not simply an
innocent oversight, the Business Office must report the incident to the
unit head and the Pcard Administrator in Central Purchasing for further
action.
5.4.1
The following items are some examples of issues where actions against an employee
may be pursued including but not limited to cancellation of the card, discipline,
termination, and legal prosecution:
5.4.1.1 Disregarding warnings on previous accidental or unintentional misuse.
5.4.1.2 Not properly safeguarding the card or the account number.
5.4.1.3 Not reporting a lost or stolen card in a timely manner.
5.4.1.4 Not reallocating charges to proper accounts in a timely manner.
5.4.1.5 Not sending reviewed and signed statements, receipts, and documentation to the
Pcard Verifier on a monthly basis.
5.4.1.6 An egregious misuse of the card by making personal purchases where it is not an
isolated incident of accidental use, the cardholder’s explanation is unsatisfactory, and
the cardholder has not reimbursed the university.
5.4.1.7 Otherwise neglecting to follow proper policy and/or procedures including those for
travel.
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5.5 Run UC Flex reports monthly for some users who may need assistance
with managing their transactions. Request that they review and approve
the information on the report.
5.6 Run UC Flex BW reports at least annually to review unit’s overall pcard
usage for improvements that can be made on compliance, efficiencies,
and pricing (by consolidation of purchases on a service agreement
and/or contract which has been bid).
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6 Additional Resources
6.1 Central Purchasing Website
6.1.1
http://www.uc.edu/af/purchasing.html
6.2 Pcard Manual
6.2.1
http://www.uc.edu/content/dam/uc/af/purchasing/docs/PCARDManual.pdf
6.3 Pcard related forms
6.3.1
http://www.uc.edu/af/purchasing/resources.html#forms
6.4 Pcard Cardholder Training
6.4.1
https://webapps.uc.edu/purchasing/pcard/
6.5 Pcard Verifier Training
6.5.1
http://eh.uc.edu/streaming_media/training/admin-cardverifier-07-18-08/
6.6 Purchasing Manual
6.6.1
http://www.uc.edu/content/dam/uc/af/purchasing/docs/PurchasingManual.pdf
6.7 Administration and Finance Policies
6.7.1
http://www.uc.edu/content/dam/uc/af/financialpolicies/Docs/pcardviol_pol.pdf
6.7.2
http://www.uc.edu/content/dam/uc/af/financialpolicies/Docs/travelexp_pol.pdf
6.7.3
http://www.uc.edu/content/dam/uc/af/financialpolicies/Docs/mealexp_pol.pdf
6.8 Receiving
6.8.1
http://www.uc.edu/af/facilities/services/centralreceiving.html
6.9 UC Flex Course Instructions
6.9.1
https://help.ucflex.uc.edu/gm/workplace
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UCIT Employee Procurement Card Statement of Understanding
(To be completed and signed by employee)
As a user, allocator, or reviewer of a procurement card (pcard), I attest to
having read the “UCIT Pcard Procedures”, the university’s “Purchasing Card
Policies and Procedures Manual”, and the university’s “Purchasing Card
Violations” policy, and understand that I am responsible for knowing and
following said policies and procedures. I am also responsible for reviewing
and abiding by any future changes to them. I further understand that any
intentional or unintentional misuse of the procurement card, or negligence on
my part in following the aforementioned policies and procedures, may result
in disciplinary action including but not limited to reprimand, loss of
procurement card privileges, termination of employment, and/or criminal
prosecution.
Employee Name (printed):______________________________________________________________
Date of Signature:_____________________________________________________________________
Employee Signature:__________________________________________________________________
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