Purchasing Card Program
Policies and Procedures ManualTable of Contents
OBTAINING A PURCHASING CARD
General
Setting Up Your Department
Separation of Duties
Cardholder Eligibility
Applying for a Purchasing Card
Cardholder Purchase Limits
Card Security
Card Sharing
Lost, Misplaced or Stolen Purchasing Cards
Cardholder Liability
Cardholder Termination
GENERAL
For the purposes of efficiency in administration and management, only approved and trained department Visa Purchasing Cardholders or their designated secondary users are authorized to make purchases of materials, supplies, and non-capital equipment direct from the vendor when the dollar value of the purchase is $1,999.99 or less including freight. University Cardholders do not have to contact the Purchasing Department before placing an order using the Purchasing Card for these small purchases. All University policies and procedures and state of Alabama bid law for the expenditure of funds must be followed. If the department wishes to route the purchase through the Purchasing Department, normal procedures for processing a requisition must be followed.
SETTING UP YOUR DEPARTMENT
The organizational structure for your success with the purchasing card already exists within your department(s). Deans, Department Heads and Budget Managers have some liberties available to them within program parameters when setting up their own Purchasing Card Programs. Those employees who are currently responsible for placing orders should more than likely be cardholders in the Visa Purchasing Card program. Those employees who are responsible for processing payments on purchase orders should more than likely be department reconcilers. A reconciler can also be a cardholder and reconcile for herself/himself. A Department Head may decide that each cardholder should reconcile their own transactions, or that a centrally located Reconciler will reconcile transactions for all department cardholders. An approving official must be designated to sign the reconciled monthly cardholder report.
SEPARATION OF DUTIES
A separation of duties must be followed with the Purchasing Card Program, as with any other financial transaction. The person placing the order and/or reconciling it must not be the same person who ultimately approves all Visa transactions listed on the Bank of America monthly statement and Reconciliation Report. For example, a cardholder who reconciles her/his own transactions cannot also act as the Approving Official for those transactions.
CARDHOLDER ELIGIBILITY
The criteria to receive a Purchasing Card are as follows:
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Individual Applicant must be employed by the University of Alabama.
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Applicant’s request for a VISA Purchasing Card must be approved by his/her Department Head, Dean, or Area Budget Manager.
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Applicant must be assigned a Department Reconciler selected by his/her Department Head or Budget Manager or receive approval to reconcile his/her own transactions.
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Employee must attend a training session for polices / procedures and/or software before receiving the Purchasing Card.
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Each individual Cardholder must sign a Cardholder Agreement (Attachment 2) prior to receiving the Visa Purchasing Card.
APPLYING FOR A PURCHASING CARD
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The Dean’s Office, Department Head, or Area Budget Manager will decide who should receive a Card. The Budget Manager will forward a Cardholder Application Form (Attachment 1) to authorized user applicants.
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The prospective cardholder will complete the application form for a Purchasing Card. A default departmental Fund, Org, and Program must be assigned, and a monthly spending limit must be determined.
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The Dean, Director or individual with budgetary responsibility for the accounts, will approve the monthly spending limit for the Cardholder.
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The Dean, Director, or Budget Manager must sign the Application for the Purchasing Card and agree to the Cardholder Agreement.
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The Budget Manager should verify the information and forward the signed and approved Cardholder Application Form to the Purchasing Card Coordinator in Purchasing Card Services.
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The Purchasing Card Coordinator will review the Application and, if in order, transmit the information to the bank.
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The Visa Purchasing Cards will be delivered to the Purchasing Card Coordinator in the Purchasing Department. Upon completion of the University Purchasing Card training program, the cardholder will be asked to sign the Cardholder Agreement prior to receiving the Visa Purchasing Card.
NOTE: The Department Chair and the Purchasing Card Administrator(s) must approve any exceptions requested or granted concerning the list of unallowable purchases in the Cardholder Manual and monthly / single purchase limits.
CARDHOLDER PURCHASE LIMITS
Cardholder monthly credit limits as noted on the Cardholder Application Form (Attachment 1) should be carefully decided according to the funding source or contract associated with the card and monthly spending requirements. Single transactions must not exceed $1,999.99 including freight charges. Cardholder monthly credit limits will be monitored and adjusted as needed.
CARD SECURITY
Each department must determine how to secure their cards. In some cases, it may be appropriate for individuals to carry the cards in their own personal wallet. In other cases, the cards may be stored in a secure place within the department and checked out as needed. In either case, the Purchasing Card numbers should be protected as any blanket or department purchase order number would be. The individual’s name that appears on the card bears the responsibility for all purchases made with that particular card.
CARD SHARING
It is permissible for a Cardholder to share his/her card with another individual for the purpose of picking up ordered items locally, placing orders verbally, or over the internet. In granting this secondary use authorization, the Cardholder remains directly responsible for the proper use of the card in accordance with established procedures.
A Purchasing Card Authorization Memo (Attachment 11) and Delegation of Authority for Visa Purchasing Card (Attachment 12) are provided for your use when sharing your Visa Purchasing Card. A Purchasing Card Log should also be set up to track the use of the card by secondary users. The Authorization Memo serves to introduce the secondary user to the supplier and authorizes the use of the card by this individual. The items to be charged to the Purchasing Card can be listed on the Authorization Memo. The Delegation of Authority is an agreement that the secondary user should be asked to read and sign to formally accept the responsibility of using the University’s Visa Purchasing Card. These forms should be revised to reflect each department’s unique information and printed on department letterhead.
LOST, MISPLACED OR STOLEN PURCHASING CARDS
Cardholders are required to immediately report any lost or stolen Purchasing Card directly to Bank of America toll-free at 1-800-300-3084 (24 hours a day, 365 days a year). The Cardholder must also immediately notify his/her Department Reconciler and the Purchasing Card Administrator about the lost or stolen card at the first opportunity during normal business hours.
CARDHOLDER LIABILITY
The Purchasing Card 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 card is used within stated guidelines of the Purchasing Card Program Manual as well as University of Alabama Policies and Procedures relating to the expenditure of University funds. The Purchasing Card 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 Purchasing Card or uses the Purchasing Card in an inappropriate manner will be subject to disciplinary action including possible card cancellation, termination of employment and criminal prosecution. If a University employee is in a position to obligate the University, that employee is entrusted with the responsibility of protecting the University from harm.
CARDHOLDER TERMINATION
A Purchasing Card account must be closed if a Cardholder: (a) transfers to a different department, (b) terminates employment or (c) for any of the following reasons which may also subject the Cardholder to disciplinary action in accordance with University Policies and Procedures
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The Purchasing Card is used for personal or unauthorized purposes.
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The Purchasing Card is used to purchase alcoholic beverages or any substance, material, or service which violates policy, law or regulation pertaining to the University of Alabama.
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The Cardholder splits a purchase to circumvent the state of Alabama bid law or the limitations of the Purchasing Card.
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The Cardholder uses another Cardholder’s card to circumvent the purchase limit assigned to either Cardholder or the limitations of the Purchasing Card.
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The Cardholder fails to provide the Department Reconciler with required itemized receipts or facsimile thereof.
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The Cardholder fails to provide, when requested, information about any specific purchase.
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The Cardholder does not adhere to all of the Purchasing Card policies and procedures.
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Monthly reconciliation of transactions is not completed and received in Purchasing Card Services by the 10 th of each month.