Purchasing Card Program
Policies and Procedures ManualTable of Contents
The University of Alabama Purchasing Card Program is designed to allow the Cardholder to handle authorized purchases up to $1,999.99 per single transaction including freight without delays or paperwork that can accompany larger transactions. This Cardholder manual was developed to assist you in better understanding the program.
For every purchase that is made using the card, the processing time and effort put forth to pay for that order individually is reduced. As participants in this Purchasing Card Program, you are part of an on-going 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 Program goals by using the card in accordance with the Program policies, and by encouraging participation in the Program, among both employees and vendors. Finally, remember you are representing the University each time you use the Purchasing Card. You are acting as a University agent, and as such you must be aware of Purchasing Ethics, see Code of Ethics on page 31.
The purpose of this guide is to establish policies and procedures under which departments of The University of Alabama must control the use of Visa Purchasing Cards issued to their authorized employees to purchase commodities on behalf of the University. This guide is intended to accomplish the following:
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Ensure purchases made with the Purchasing Card are accomplished in accordance with the policies and procedures established by the Purchasing and Accounts Payable Departments and the regulations of the State of Alabama.
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Ensure appropriate internal controls are established within each department using Visa Purchasing Cards.
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Ensure the University bears no legal liability for inappropriate use of UA Purchasing Cards.
All transactions using the University of Alabama Purchasing Card must benefit and support the University’s mission of education, research, and public service. Use of the Visa Purchasing Card for personal purchases is strictly prohibited. The Purchasing Department and Accounts Payable Department are responsible for monitoring the effectiveness of the Purchasing Card Program and user compliance with the procedures outlined in this manual. The Purchasing Card represents the University’s trust in you and your empowerment as a responsible employee of the University to safeguard and protect the University’s assets. As a Cardholder, you assume the responsibility for the protection and proper use of the Purchasing Card. Failure to comply with program guidelines may result in permanent revocation of the card, notification of the situation to management, and further disciplinary measures that may include termination.
Cardholders – Since vendors will be paid by Bank of America within 48 to 72 hours of each transaction, credit holds placed on the University campus will cease to occur. Departments will receive one credit card statement each month for every cardholder in place of invoices from each vendor with whom an order has been placed. The Purchasing Card Program will significantly reduce the workload and processing costs related to the purchase and payment of ordered goods.
The University - A built-in card feature makes the program easy to control and manage and reduces processing costs at all levels by reducing the number of invoices and checks processed and empowering the individual to make purchases and allocate expenses as needed. It will enable Purchasing and Accounts Payable to focus on higher yield, value added activities.
Fiscal Manager – Only one (1) monthly statement per cardholder will be received for verification and reconciliation. Monthly approvals required rather than individual orders and invoice approvals. There is more accountability and control with the Purchasing Card Program.
Vendors - The Visa Purchasing Card will be welcomed by vendors who accept credit cards. Vendors will receive cash payment from Bank of America within 48 to 72 hours of the transaction. Vendors will experience a reduction of credit risk, reduced billing and collection costs, a reduction in the time and cost associated with credit checks, and there should be increased sales opportunities.
You must be selected and approved by your Dean or Department Head
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You must complete the Application Form (Attachment 1)
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You must receive training for Policies and Procedures and software use, if applicable, prior to being issued a Purchasing Card.
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You must sign the Cardholder Agreement (Attachment 2) at the time you are issued a Visa Purchasing Card.
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You must review and understand the Policies and Procedures Manuals.
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You must be assigned to a trained Reconciler located in your area or be approved to reconcile your own transactions.
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You must establish internal controls and procedures to safeguard the card and the Purchasing Card Program.
The University Purchasing Card issued in your name is the property of Bank of America, and is to be used for Official University business purchases only. NEGLECT OR ABUSE OF THE CARD CAN AND WILL RESULT IN SEVERE CONSEQUENCES.