University of Delaware
Policies and Procedures Manual

Section: Procurement and Auxiliary Services
Policy Number: 5-22
Policy Name: University Procurement Card
Date: October, 2000; July 1, 2005

  1. PURPOSE


    2. To set forth the Policies and Procedures for the University of Delaware Procurement Card Program.

  2. POLICY

    3.  
    1. INTRODUCTION


      2. The University of Delaware Procurement Card Program has been established to provide a convenient means with which to make purchases and, at the same time, reduce the costs associated with initiating and paying for those purchases. The University Procurement department is responsible for managing the Program, and each Academic or Administrative department is responsible for managing its Cardholder accounts. Four areas of responsibility have been defined within each department to assist in this management effort. They are the Cardholder, Card Administrator, Independent Reviewer and Department Contact. It is important to understand that these four areas of responsibility do not necessarily equate to four separate individuals within the department. It is permissible for one individual to be assigned one or more of these responsibilities as defined in these Policies and Procedures. The ultimate decision as to how each of these responsibilities is assigned will be made within each department.
       

    2. DEFINITIONS

      3.  
      1. Procurement Card: A charge card issued to a permanent employee of the University of Delaware for the purpose of making authorized purchases on the University's behalf. The University will issue payment for charges made with the Procurement Card.
      2. Cardholder: Permanent University Employee whose name appears on the Procurement Card and is accountable for all charges made with that card.
      3. Card Administrator: University employee(s) within each department responsible for verifying online that all charges against the Cardholder's account are backed up by support documentation and that the documentation is retained within the department. Card Administrators have the ability to allocate individual charges to as many as six University accounts. Cardholders may be their own Card Administrators and a Card Administrator may oversee more than one Cardholder account depending on how the department elects to manage its accounts. A department may have more than one Card Administrator.
      4. Independent Reviewer: University employee(s) within each department responsible for sampling and testing Procurement Card transactions to verify that they are appropriate and supported by adequate documentation. To be effective, the Independent Reviewer must be in a position to objectively question any and all Cardholder purchases. Cardholders may not be their own Independent Reviewers and whenever possible, the Independent Reviewer should not be subordinate with a reporting line to the Cardholder. A department may have more than one Independent Reviewer.
      5. Department Contact: University employee within each department responsible for receiving and disseminating Procurement Card information within their department and for relaying Procurement Card information from within their department to the Program Administrator. It is recommended that each department have only one Department Contact.
      6. Program Administrator: University Procurement department employee responsible for administering the Procurement Card Program for the University and acting as the main contact between the University and the Bank.
      7. Transaction/Charge Limit: A dollar limitation of purchasing authority assigned to the Cardholder for each total charge made with the Procurement Card. This amount must not exceed $5,000.00. Departments may establish lower limits on a per Cardholder basis. A single transaction/charge may include multiple items but cannot exceed $5,000.00.
      8. Monthly Spending Limit: A dollar limitation of purchasing authority assigned to the Cardholder for the total of all charges made during each monthly billing cycle. This amount may not exceed $20,000.00. Departments may establish lower limits on a per Cardholder basis.
      9. Statement of Account: A listing of all transactions charged to the Cardholder's card account up to the end of the monthly billing cycle. This statement is sent by the Bank, directly to the Cardholder, on a monthly basis.
      10. Default Purpose: The University purpose code assigned to an individual Cardholder's Procurement Card. Only one Default purpose can be assigned to any one Procurement Card and all charges made with the Procurement Card will be posted into that Default purpose unless those charges are reallocated. (See Section VII)
      11. Support Documentation: A merchant produced or non-University document that records the relevant details for each item purchased including quantities, amounts, a description of what was purchased, the total charge amount and the merchant's name and address (e.g. sales receipt, original invoice, packing slip, credit receipt, etc.).

        12.  
    3. RECEIVING THE PURCHASING CARD

      4.  
      1. A complete Cardholder Enrollment Form must be submitted for each prospective Cardholder. This form must be signed by the administrator for the default purpose shown on the form and then forwarded to the Program Administrator. (See Attachment A)
      2. All prospective Cardholders must complete the online training and sign a Cardholder Agreement Form to be eligible to receive a Procurement Card. (See Attachment B)

        3.  
    4. AUTHORIZED CARD USE

      5.  
      1. Cardholders are authorized to use the Procurement Card to purchase any merchandise or services required as a function of their duties at the University with the exception of the following:
        • Items For Personal Use
        • Items For Non-University Purposes
        • Cash Advances
        • Food and Beverages including Alcoholic Beverages (Order from Dining Services)
        • Travel Related Expenses (To be paid with the University Corporate Card. Airfare allowed on selected cards; See Section II.4.F.)
        • Entertainment
        • Recreation
        • Contracting
        • Gasoline (To be purchased with University Fleet Card.)
        • Motorized Vehicles
        • Financial Services
        • Radioactive Material (Order via Occupational Health and Safety)
        • Laboratory Animals (Order via the Laboratory Animal Facility)
        • Any purchases prohibited by University policy or not related to University business
      2. Only the Cardholder whose name is embossed on the Procurement Card is authorized to use the card and is responsible for ensuring that all charges made with the card are in compliance with these Policies and Procedures.
      3. The total value of any one charge made with the Procurement Card may not exceed the single transaction limit stipulated on the Cardholder's Enrollment Form.
      4. Purchases of the following items must be authorized in advance by the designated individual within the University. Authorization should be obtained in writing and included with the support documentation for that purchase.
        • Respirators - Director of Occupational Health and Safety
        • Refrigerators - Director of Occupational Health and Safety
        • Fume Hoods - Director of Occupational Health and Safety
        • X-ray Equipment - Director of Occupational Health and Safety
        • Copiers - Director of Supporting Services
        • Printing - Publications Manager
        • Biological Safety Cabinets - Director of Occupational Health and Safety
        • Laminar Flow Clean Benches - Director of Occupational Health and Safety
        • HEPA Filtered Equipment - Director of Occupational Health and Safety
      5. Purchases of the following items must be communicated in writing to the designated individual. A copy should be included with the support documentation for that purchase.
        • Laser Equipment - Director of Occupational Health and Safety
        • Intrusion Alarms - Director of Public Safety
        • Insurance - Director of Risk Management
      6. Selected cardholders may be authorized to use their Procurement Card for the purchase of airline and rail tickets under the following conditions:
        1. The ticket is for authorized University business travel.
        2. All University policies relating to travel and the purchase of airline and rail tickets as outlined in the University Travel Policy (Policy 3-7) are followed.
        3. Purchase of the ticket must be reported on a Business Expense Reimbursement form (BER) with other expenses related to the trip. If there are no other expenses to be reported, a BER must still be completed for the ticket purchase, and submitted to the Procurement Services office.
        4. A ticket receipt must be submitted with the BER.
        5. If the ticket is purchased for a non-University person (visitor, candidate, etc.) the ticket receipt must be kept in the originating department and attached to the statement of the cardholder who purchased the ticket. Citizenship must be noted on all tickets purchased for non-University persons. If the person is not a US citizen, a UDW-8 must also be attached to the statement. All support documentation will be held with the cardholder statement including an explanation of the purpose of the visit and any additional corroborating documentation (e.g. a copy of the ad for a candidate or the flyer announcing a speaker).
        6. Cardholders authorized to use the Procurement Card for airline and rail tickets will be selected by their department chair, director, or other department head.
        7. A Cardholder Agreement as to the Purchase of Airline and Rail Tickets Form (Attachment F) signed by the cardholder and their department head must be submitted before the card is authorized for airline ticket purchases.

          8.  
    5. UNAUTHORIZED AND/OR INAPPROPRIATE CARD USE

      6.  
      1. The Procurement 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.
      2. A Cardholder who makes an unauthorized purchase with the Procurement Card, as defined in section II.4, or uses the Procurement Card in an inappropriate manner will be subject to disciplinary action including possible card cancellation, termination of employment at the University of Delaware and criminal prosecution.

        3.  
    6. MAKING A PURCHASE WITH THE PROCUREMENT CARD

      7.  
      1. Consult UDMart as well as the Preferred Merchant listing located on the Procurement Department's Home Page on the World Wide Web. The Cardholder should purchase from preferred merchants whenever possible to take advantage of pricing and terms negotiated on a University wide contract basis.
      2. Confirm that the selected merchant accepts credit cards. If not, choose another vendor or submit a requisition to Procurement so that the purchase can be made via a Purchase Order. In either case, inform the Program Administrator, via the Department Contact, about the fact that the original merchant did not accept credit cards.
      3. When making purchases in person, the Cardholder must sign the charge receipt and retain the customer copy. The Cardholder should verify that either the charge receipt or sales receipt complies with the requirements for support documentation set forth in Section II.2.K.
      4. When making non-in person purchases (e.g. via telephone, computer, mail order, etc.) Cardholders should give the merchant the account number embossed on their card and direct the merchant to include the following on the shipping label and/or packing slip:
        • Cardholder name and phone number
        • Department name
        • Complete campus delivery address including building name and room number
        • The words "credit card purchase"
      5. Cardholders are encouraged to receive their own shipments; however, if someone on Campus will be receiving a shipment on the Cardholder's behalf (e.g. Central Receiving), the Cardholder should notify them in advance. Regardless of who receives the shipment, the Cardholder is responsible for obtaining all documentation (packing slips, mail order form copies, etc.) related to the purchase and verifying that the documentation complies with the requirements for support documentation set forth in Section II.2.K.

        6.  
    7. MERCHANDISE RETURNS AND EXCHANGES

      8.  
      1. The Cardholder is responsible for contacting the merchant when merchandise purchased with the Procurement Card is not acceptable (incorrect, damaged, defective, etc.) and arranging a return for credit or an exchange.
      2. If merchandise is returned for credit, the Cardholder is responsible for obtaining a credit receipt from the merchant and retaining that receipt with the support documentation for that purchase. Receiving cash or checks to resolve a credit is prohibited.
      3. If merchandise is to be exchanged, the Cardholder is responsible for returning the merchandise to the merchant and obtaining a replacement as soon as possible. Documentation showing the proper resolution of the exchange is to be retained with the support documentation for that purchase.

        4.  
    8. RECORD RETENTION

      9.  
      1. Cardholder Responsibility: The Cardholder is responsible for obtaining purchase documentation from the merchant (sales receipt,packing slip, etc.) to support all purchases made with the Procurement Card and verifying that the documentation complies with the requirements for support documentation set forth in Section II.2.K.

        2. Note: In addition to obtaining the documentation, it is recommended that the Cardholder also record the details of each purchase in a transaction log. (See Attachment E)
      2. Card Administrator Responsibility: It is the Card Administrator's responsibility to assure that all support documentation and the corresponding Cardholder Statement of Account are retained within the department per the following retention schedule:
        1. University Funded Purchases: Retain for no less than 3 years after the year in which the documentation is received.
        2. Grant Funded Purchases: Retain until notification is received from the Office of the Vice Provost for Research to do otherwise.
        Note: It is recommended that the Card Administrator retain all Cardholder documentation within a central depository and coordinate the record retention function with the departmental Records Management Contact.
  3. CARDHOLDER VERIFICATION OF CHARGES

    4.  
    1. Cardholders are accountable for all charges made with their Procurement Cards and are responsible for checking all transactions against the corresponding support documentation to verify their accuracy and propriety. This check should be done regularly using the University's on-line transaction review system and/or the Cardholder's printed Statement of Account.

      2. Note: If the Cardholder is also the Card Administrator, accountability for each charge should be recorded at this time using the on-line transaction review system as described in Section V.
    2. If a particular charge or credit does not appear on-line or on the Statement of Account, it should be checked against future on-line transaction information and/or the next Statement of Account. If the charge or credit does not appear within 60 days after the original charge was made, the Cardholder must notify the Program Administrator.
    3. If the Cardholder disputes a charge, the nature of the dispute and the final resolution must be documented. This documentation must be retained with the Statement of Account on which the disputed charge appears. (See Section IV)
    4. After all transactions have been checked, the Cardholder must sign his or her Statement of Account. The signed statement and all support documentation must be forwarded to the Card Administrator.

      5.  
  4. CARDHOLDER CHARGE DISPUTE RESOLUTION

    5.  

    In the case of a disputed charge, the Cardholder must try to resolve the dispute directly with the merchant. If the dispute cannot be resolved, the Cardholder must complete a cardholder Dispute Form (See Attachment C) within 60 days of the date noted on the Statement which lists the disputed charge and forward the completed form to the Bank.
     

  5. CARD ADMINISTRATOR VERIFICATION OF CARDHOLDER CHARGES

    6.  
    1. The Card Administrator is responsible for reviewing each transaction using the University's on-line transaction review system and indicating in the designated field if a charge is Supported (S) or if there is a Discrepancy (D) based on the available support documentation. Cardholders will perform this function if they are Card Administrators.
    2. For a charge to be Supported there must be adequate support documentation available so that the Card Administrator can ascertain that the purchase is valid and the Cardholder is accountable for that purchase.
    3. For there to be a Discrepancy associated with a charge, any one or more of the following situations may exist:
    4. All discrepancies must be investigated and resolved. The disposition of each discrepancy must be documented and retained with the Support Documentation and/or Statement of Account. Cardholders are accountable for all discrepancies.

      5. Note: If a discrepancy cannot be resolved, the Independent Reviewer must be notified.
    5. A designation of Supported (S) or Discrepancy (D) must be assigned to each transaction, using the on-line transaction review system, as soon as possible after they become available (transactions will be loaded daily). If a particular transaction has not been designated within 30 days of the Statement date, a reminder will be sent to the Cardholder. If after 60 days the transaction is still undesignated, a warning message will be sent and after 90 days, the card may be canceled.
    6. After all transactions have been designated, the Card Administrator must forward the support documentation and Statement of Account to the Independent Reviewer.

      7.  
  6. THE INDEPENDENT REVIEW OF CARDHOLDER TRANSACTIONS

    7.  
    1. The transactions on the Cardholder's Statement of Account must be reviewed monthly by an independent non-subordinate, as defined in Section II.2.D, to ensure compliance with these Policies and Procedures. The Independent Reviewer should test a sample of transactions from each statement to verify that each of those transactions is supported by adequate documentation and meets all the criteria for authorized card use set forth in Section II.4. Questionable transactions (e.g. purchases of items for personal use or for non-University purposes, etc.) should be especially scrutinized. The number of transactions reviewed should be sufficient to ensure that the review is effective. Review results must be documented by the Independent Reviewer and retained with the support documentation and corresponding statement. See Recommended Independent Reviewer Work Program.
    2. For questionable transactions or transactions that lack adequate support documentation, the Independent Reviewer must contact the Cardholder to obtain an explanation, supporting documentation and/or reimbursement. Questionable charges for which satisfactory explanations or documentation cannot be obtained will be deemed unauthorized and/or inappropriate. (See Sections II.4 and II.5)
    3. If during the review process, serious irregularities are detected, the Independent Reviewer must notify the department head and the Program Administrator.
    4. After the Independent review process is complete, the Cardholder Statement of Account and corresponding support documentation are to be filed within the department per the record retention requirements set forth in Section II.8.B.

      5.  
    5. CHARGE ALLOCATION TO NON-DEFAULT PURPOSES

     
    1. For any given charge, the Card Administrator has the option to perform an on-line reallocation from the default purpose to as many as six additional University purposes. If the reallocation option is not exercised by the last business day of the month in which the billing cycle ends (billing cycles run from the 16th of one month to the 15th of the next) the total amount of the charge will be posted into the default purpose. Reallocation at this point will require a Journal Voucher.

      2. Note: Reallocation to Revenue or Salary accounts is not permitted.

    2. If a particular charge reallocation involves one or more grant purposes, and the Card Administrator is not sure what the grant allows, they should consult the award document(s) for the affected grant(s). If there are still further questions, the Card Administrator should contact the appropriate project manager in the Office of the Vice Provost for Research.

      3.  
  7. PROCUREMENT CARD SECURITY

    8.  
    1. It is the Cardholder's responsibility to safeguard the Procurement Card and Procurement Card account number at all times.
    2. Cardholders must keep their Procurement Cards in a secure location at all times.
    3. Cardholders must not allow anyone else to use their Procurement Cards and/or Procurement Card account numbers.
    4. Cardholders must not post their Procurement Card account numbers where they can be easily seen by others.

      5.  
  8. LOST, STOLEN OR DAMAGED PROCUREMENT CARD

    9.  
    1. If a Card is lost, stolen or damaged, the Cardholder must notify the bank immediately. Representatives are available 24 hours a day.
    2. Cardholders must notify the Program Administrator if their cards are lost, stolen or damaged within 24 hours after reporting the incident to the Bank.
    3. After the above notification procedures have been completed, a new Procurement Card will be issued to the Cardholder by the Program Administrator.
    4. A Procurement Card that is found after it has been reported lost or stolen must be destroyed by cutting it in half. The same procedure applies if a card is damaged. Both card halves must be forwarded to the Program Administrator.

      5.  
  9. CARDHOLDER ACCOUNT MAINTENANCE

    10. Whenever any of the information contained on a Cardholder's Enrollment Form changes, a Cardholder Account Maintenance Form must be completed and then signed by the administrator for the default account listed on the Cardholder's Enrollment Form. The completed Cardholder Account Maintenance Form is then to be forwarded to the Program Administrator. (See Attachment D)
    Note: If the default purpose is changed via the Cardholder Account Maintenance Form, the administrator for the new account must indicate their approval by signing the form.
     

  10. CARDHOLDER TRANSFER WITHIN THE UNIVERSITY

    11.  

    Cardholders who transfer to a new position within the same department and require the use of a Procurement Card as part of their new duties, should continue to use the same card. Cardholders who no longer require a Procurement Card in their new position or transfer to a different department must cancel their card per the instructions in Section XIII.
     

  11. CARDHOLDER SEPARATION FROM THE UNIVERSITY

    12.  

    Prior to separation from the University, Cardholders must surrender their Procurement Cards and corresponding support documentation to the Personnel Records Office or the Card Administrator. If the Cardholder is the Card Administrator and will not be exiting via the Personnel Records Office, the Procurement Card and support documentation must be surrendered to the Cardholder's immediate supervisor. In either case, the card must be canceled as per the instructions in Section XIII.
     

  12. PROCUREMENT CARD CANCELLATION

    13.  

    The Program Administrator must be notified immediately when a Card is to be canceled. The card must be destroyed by cutting it in half.
     

  • ATTACHMENTS

    •  
    1. Attachment A: Cardholder Enrollment Form
    2. Attachment B: Cardholder Agreement Form
    3. Attachment C: Cardholder Dispute Form
    4. Attachment D: Cardholder Account Maintenance Form
    5. Attachment E: Sample Transaction Log
    6. Attachment F: Cardholder Agreement as to the Purchase of Airline and Rail Tickets Form

      7.  
  • RESPONSIBLE AUTHORITY


    • The authority to enforce this policy lies within the Procurement Services Department. Any questions may be directed to (302) 831-2161 or procurement@udel.edu.

    Submitted by: Procurement Services

    Copyright, © 2000, University of Delaware. All rights reserved.
    Please direct questions to the Executive VP office.