The University of Texas at Arlington

Section I. Obtaining a ProCard

1. Non-employees of the university are not eligible to be issued a ProCard. The employee requesting his/her first ProCard will complete a Purchasing Card Application (Form 4-8) and route the completed form for approval. The approved application will be forwarded to the ProCard program administrator in Procurement Services. Upon receipt of the application, the program administrator will forward the necessary documentation to Citibank for processing.

2. Citibank will send the ProCard(s) to the program administrator. This process normally takes about 5-7 days. Approved applicants will then be required to attend an orientation meeting before taking possession of the new cards. Citibank MasterCards are issued in the cardholder's name with the State of Texas emblem and the wording "Official Use Only".

3. The cardholder will be responsible for activating the card and completing a Cardholder Agreement (Form 4-11) when the card is received. The completed agreement will be forwarded to the program administrator. Activation of a ProCard is initiated by calling (800) 248-4553. The cardholder will sign the back of the card and keep the card in a secure place.

4. Upon receipt of a ProCard, the cardholder will be responsible for setting up and maintaining a Purchasing Card Transaction Log and Example (Form 4-5) for each billing cycle. A separate log is maintained for each card. The cardholder will be responsible for collecting required support documentation and reconciling the transaction log to the VP7 billing report received at the end of each billing cycle by the assigned due date.

Section II. ProCard Restrictions and Use

1. Restrictions on Use and Penalties for Noncompliance

   1. Authorized Users: Only current UT Arlington employees may be issued a card. The ProCard should not be used by anyone other than the individual employee to whom the card is issued; however, there are legitimate instances when the cards can be shared. If a ProCard user cannot be available when purchased goods are delivered, someone else can sign for the property. When necessary, a cardholder who purchases an item over the phone or online from a local vendor may have someone else pick up the item. In both these instances the cardholder should also sign the delivery document as soon as possible and annotate in the transaction log that this was done.

   2. Maximum Purchase Amounts: The maximum single purchase limit is $2,000, including freight. Cardholders may not split or divide purchases into amounts less than $2,000 to circumvent the requirement to process a small dollar purchase order for purchases over $2,000. Cardholder transactions will be reviewed monthly for split purchases. If apparent splits are identified, the cardholder will be notified via email. Cardholders found in violation of this policy will receive a written warning. A second violation will result in the card being suspended. The maximum total amount of allowable purchases per month is $20,000 per card. Procurement Services will also verify single purchase/monthly limits semi-annually with the bank.

   3. Liability for Unauthorized Purchases: A cardholder making an unauthorized purchase will be held personally liable to reimburse the University for the full amount of purchase within ten (10) working days of discovery. If on the eleventh (11th) working day of discovery, the cardholder has not reimbursed the University, the card will be suspended pending a full investigation of the cardholder's transactions. Additionally, the state ProCard assigns the University liability for unauthorized purchases on lost cards.

      1. Citibank will be liable 100% for fraud after the card has been reported lost/stolen to Citibank. For unauthorized charges made prior to the card being reported lost or stolen, the customer's liability is limited to a maximum of $50 per card.

      2. Citibank will provide coverage of up to $100,000 per incident for employee abuse; however, in order to for the University to file a claim, the employee must be terminated.

   4. Disallowed Purchases: University funds cannot be used to pay for the items listed below.

      1. Charges for the following items are disallowed:

         1. Airlines
         2. Automobile rentals
         3. Hotels and motels
         4. Eating places, restaurants
         5. Bars, taverns, nightclubs
         6. Fast food restaurants
         7. Package stores, beer, wine, liquor
         8. Truck stop transactions
         9. Travel and related expenses
         10. Cash advances, travelers' checks, insurance, etc.
         11. Radioactive materials
         12. Veterinary services
         13. Firearms
         14. UT Arlington tuition and/or fees
         15. Internet provider service
         16. University parking decal fees
         17. Charitable donations
         18. Tours, sporting events, and entertainment events
         19. Traffic citations
         20. Toll tags

      2. Prescription drugs and controlled substances may not be purchased with a ProCard except when purchased for Student Health Services and Athletics for student athletes.

      3. Animals may be purchased with a ProCard only if purchased by the Departments of Biology or Bioengineering, or by the Office of Research Compliance.

      4. Consulting and personal services may not be purchased with a ProCard except for medical services purchased by the Athletics department for student athletes.

      5. Gifts over $100 may not be paid for with a ProCard

      6. Gift certificates over $100 for non-UT Arlington employees may not be purchased with a ProCard. All purchases of gift certificates in any amount for non-UT Arlington employees require the completion of a Gift Certificate Expense Form (Form 4-16). The completed gift certificate should be filed with the transaction log.

      7. Gift certificates for UT Arlington employees, including UT Arlington student workers, may not be purchased with a ProCard regardless of the value. If an exception to this rule is desired, the request must first be approved (ref. Section XI). After the exception request has been approved, the purchase can be made. A Gift Certificate Expense Form (Form 4-16) should then be completed and filed with the transaction log. A copy of the expense form should be forwarded to Payroll, as gift certificates received by UT Arlington employees and student workers are taxable benefits.

      8. Ammunition may be purchased with a ProCard only by the UT Arlington Police Department.

      9. No purchases, such as scholarship payments, may be made on behalf of students except for medical services purchased by the Athletics department for student athletes.

      10. Wireless communication devices and service fees, i.e. cell phones, PDAs, iPhones, and wireless communication adapters/internet cards, may not be purchased with a ProCard. Purchase of software applications for these devices and software applications for iPads and all SmartPhones is also prohibited. See Wireless Communication Device Allowance Procedures (Procedure 4-5).

   5. Authorized Business Use: The ProCard is to be used for business purposes only and may not be used for personal purchases. Use of a ProCard for personal purchases for any amount may result in disciplinary action, up to and including termination of employment.

2. Choice of Vendor

   1. Determine if a Historically Underutilized Business (HUB) can provide the needed services or goods. A HUB is a Texas business that has been certified by the State of Texas as being owned and operated by a minority or woman. Cardholders are strongly encouraged to make purchases from certified HUBs that are available and competitive. A purchase made from these businesses gives "HUB credit" to UT Arlington, and the credit is recognized in the State's semiannual and annual HUB reports. An online list of HUBs is available on the UT Arlington HUB Program website. If a needed product or service is not listed on the website, contact the UT Arlington HUB Program Director in Procurement Services at extension 22140 or email hub_program_help@uta.edu for assistance. More information on the UT Arlington HUB Program can be found in Contract with Historically Underutilized Businesses (HUB) (Procedure 4-28).

   2. Contact the prospective vendor to determine if the vendor accepts the ProCard. If no acceptable vendor for the services or products required accepts the ProCard, refer to Best Value Purchasing Procedures (Procedure 4-2).

   3. Check to be sure the vendor is not on the State of Texas "Warrant Hold" list. State agencies are not allowed to do business with or make payments to entities that are on "warrant hold", with the State of Texas until the hold is lifted. Purchases over $500 or more from a vendor based in the State of Texas require checking the vendor's status prior to making the purchase. Vendor status information is available on the Texas Comptroller website. Enter the vendor's name in the box provided and hit "search". If the vendor is on hold, the vendor's name and address will appear. Document in the space provided on the ProCard transaction log that the check was completed.

3. Purchase of Food and/or Refreshments: When food and/or refreshments are purchased with the ProCard an Official Occasion Expense Form (Form 2-98) must be completed and kept on file with the receipt(s) and the ProCard transaction log. (Purchase of coffee or coffee service for office use, purchase of food for nursing instructional purposes, and purchase of food for animals and lab experiments are exempt from this requirement.)

4. Taxes: ProCard purchases are exempt from all federal excise taxes as well as state and city sales tax. The cardholder must advise the vendor of the tax-exempt status. If necessary, a Texas Sales and Use Tax Exemption Certification (Form 2-5) may be provided to the vendor. If state sales taxes are charged, it is the cardholder's responsibility to work with the vendor to get credit for the charges. Procurement Services will review cardholders' transactions monthly for sales taxes paid. If payment of sales tax is apparent, an email will be sent to the cardholder directing them to contact the vendor.

5. Purchase of Controlled Assets: the Office of Asset Management must be notified within forty-eight (48) hours of the purchase of any furniture or equipment that is deemed a "controlled asset" to insure proper coding, tagging, and reporting. The State Comptroller requires the reporting of controlled assets property to the State Property Accounting System.

   1. Complete an Asset Information Form (Form 2-49) and fax the form to the Office of Asset management (fax # 22199) with the invoice, sales slip, or packing slip when property deemed to be a controlled asset is purchased.

   2. File the original receipts and a copy of the Asset Information Form with the ProCard transaction log.

   3. Change the default object codes on the appropriate VP7 document to the correct controlled item object codes as needed when the VP7 document is processed. (See Section VI. Billing, Payment, and Account Distribution.) Controlled asset object codes are listed below. Note: all costs incurred, including freight, shipping, handling, etc., are considered as part of the total cost of the asset.

      1. Controlled Property Items $500.00 to $4,999.99:

         1. Object Code 1837: Stereo systems, cameras, video cameras, TVs, VCRs, camcorders, laserdisk players, data projectors
         2. Object Code 1847: Printers
         3. Object Code 1856: Museum Artifacts

      2. Controlled items regardless of cost:

         1. Object Code 1847: Desktop CPUs, portable CPUs, and laptops.
   4. If further clarification is required please call the Office of Asset Management at extension 22191.

6. Purchase of Capitalized Equipment: When the purchase of parts for an asset that is considered capitalized equipment (equipment whose original cost was $5,000 or more) increases the value or useful life of the equipment by 25% or more, the purchase of the parts is considered a "capital equipment upgrade" and the recorded value of the upgraded equipment must be adjusted accordingly. If this type of purchase is made, notify the Office of Asset Management at 22191 for instructions.

Section III. ProCard Procedure Reviews

1. Representatives from the Office of Accounting and Business Services will periodically visit all departments utilizing the ProCard to assess levels of familiarity with these procedures. Training is provided for new ProCard users, and monthly reviews of departmental ProCard transactions are conducted for indications of compliance issues.

2. Cardholders' supervisors will receive notice of any indications of noncompliance, and ProCard privileges may be terminated. Disciplinary actions that may be taken are consistent with those found in the Discipline and Discharge Policy (Procedure 3-27). The cardholder's supervisor is responsible for carrying out disciplinary action.

Section IV. Receipt of Materials and Services

1. The cardholder assumes responsibility for ensuring receipt of materials and services and shall follow up with vendors to resolve any delivery problems, discrepancies, and/or damaged goods.

   1. If an employee other than the cardholder is allowed to pick up or sign for receipt of an item purchased with ProCard, the cardholder should sign the delivery document as soon as possible and annotate in the transaction log that this was done

   2. The cardholder should request that the vendor deliver the goods directly to the cardholder's physical location (street address, building name and suite/room number) to preclude any delivery problems, discrepancies, and/or damaged goods. If materials are ordered by phone, require the vendor to include a sales receipt in the package with the filled order to provide documentation. The cardholder should also ask the vendor to mark the outside packaging label with the cardholder's name, department name, phone number, and the code "PCP" (ProCard Purchase). This information will allow prompt delivery to the cardholder if the package is delivered to Central Receiving.

   3. The cardholder is responsible for coordinating returns directly with the vendor and for securing the appropriate credit. Documentation of returned items should be attached to the transaction log.

Section V. Required Recordkeeping

1. Transaction Log: When a new ProCard has been received and activated, a Purchasing Card Transaction Log and Example (Form 4-5) must be set up and maintained to document all activity associated with the use of the card. A separate log is maintained for each card. Entries to the log should be made as transactions occur.

   1. To facilitate recordkeeping and reconciliation processes, each cardholder should maintain current transaction log information including, at a minimum, the following items:

      1. Transaction Date
      2. Vendor Name
      3. Description of Purchase
      4. Transaction Amount
      5. Warrant Hold (N/A or OK)
      6. Reconciled (yes or no)
      7. Support Attached (yes or no)
      8. Comments
      9. VP7 payment document ID
      10. Cardholder name
      11. Card number (last four digits)

   2. For recordkeeping purposes, an itemized document for each item that was purchased, returned or credited should be maintained with the transaction log. Some examples are:

      1. Sales receipts
      2. Credit memos
      3. Packing slips
      4. Credit card slips
      5. Merchandise advertisement
      6. Other information related to the purchase

2. ProCard Files: The transaction and reconciliation logs, along with support documentation, should be filed by cardholder name and in date order. The file for all cardholders will be maintained in a central location at the department or equivalent level. Documentation will be retained for the current fiscal year plus three fiscal years.

Section VI. Billing, Payment, and Account Distribution

1. Citibank transmits transaction data electronically to Procurement Services. A summary report is generated from the data received and uploaded into the *DEFINE system. After the information has been reviewed and approved, VP7 documents are created and distributed via the *DEFINE system with a deadline for completion to participating departments for review and processing every thirty (30) days. Procurement Services receives notification of delinquent VP7s that have not been processed by the assigned due dates.

2. When the VP7 is received it is reviewed and approved by the cardholder and the supervisor/manager or designee within the specified deadline. The cardholder assumes responsibility for verifying all purchases and transactions listed on the monthly VP7 statement.

   1. The person responsible for reconciling the transactions will first reconcile the charges on the VP7 to the log. If the preparer of the transaction log is different from the cardholder, the preparer will need to sign and date the transaction log as well as the cardholder.

   2. The cardholder will replace the default object codes with correct codes, make any necessary changes to the account number, and ensure that detailed receipts that support all transactions are available. Procedures for changing the object codes are available on the *DEFINE website: click on "Training Manuals", then "Category VP7", and then go to page 6. A list of object codes is available on the GG9 screen in the *DEFINE system. For training on the VP document, contact *DEFINE Education at extension 22138.

   3. When the reconciliation is complete, the reconciler will note "yes" in the "reconciled" column of the transaction log to indicate that the item posted to the VP7 matches the entry in the log.

   4. Any discrepancies should be PROMPTLY investigated with "action taken" recorded in the "comments" section. When the charges have been reconciled to the VP7 and the transaction log, the cardholder will sign and date the transaction log and route the log and supporting documentation to the supervisor/manager.

   5. The supervisor/manager will review, date, and sign the log and then electronically approve the VP7. This must occur by the due date indicated on the system after the VP7 was received. Failure to approve the VP7 transactions for three consecutive months will result in a warning letter sent to the cardholder with a copy to their supervisor. Failure to approve the VP7 transactions for four consecutive months will result in suspension of the card.

3. Reconciliation Log: If the totals of the VP7 and the transaction log are not equal, the cardholder will prepare a Purchasing Card Reconciliation Log and Example (Form 4-4). The transaction log and the reconciliation log, along with supporting documentation, will be routed to the supervisor/manager for review. The supervisor/manager will then review, date, and sign both logs and electronically approve the VP7.

4. Procurement Services will process payment to Citibank using the default information for each card and any changed information received by the deadline. If the primary account cannot accept the charge, Procurement Services will contact the cardholder for an account number that will accept the charge.

Section VII. Disputing a Transaction

Any charge that appears on the monthly statement may be disputed if it is in error.

1. If there is a charge that is not recognized, or it appears to be incorrect, the cardholder will first contact the vendor and try to resolve the dispute.

2. If an agreement cannot be reached with the vendor, the cardholder will contact Citibank Customer Service at (800) 248-4553.

3. If the dispute cannot be resolved on the phone, the cardholder will ask the bank to send a dispute resolution form.

4. Disputes must be processed within 60 days of the statement date on which the transaction posted, even if the merchant is working on resolving the dispute.

Section VIII. Reporting a Lost or Stolen ProCard

1. If the ProCard is lost or stolen, the cardholder must notify the bank and the UT Arlington Police Department immediately. The University will be liable for any charges made with the card before the card is reported lost or stolen. Bank representatives are available twenty-four hours a day, seven days a week, at (800) 248-4553 to receive calls. The UT Arlington Police Department number is (817) 272-3381. The cardholder will also notify the department head and the ProCard Program Administrator in Procurement Services.

2. Upon receipt of the cardholder's telephone call, the bank will immediately suspend the ProCard and issue a new card.

Section IX. Cardholder Termination or Transfer

1. When a cardholder terminates employment with the University, the department has the specific obligation to reclaim the ProCard from the employee and return the card to the Program Administrator prior to the employee's termination date. Failure to return the card promptly may result in revocation of all departmental ProCard privileges.

2. When a cardholder transfers from one department to another, an email or memo should be sent to Procurement Services to initiate changes in departmental information and account numbers.

3. Procurement Services will receive a copy of the Employee Clearance Form by email when employees terminate employment or change departments.

Section X. Inactive Card Cancellation

Citibank provides Procurement Services with a semiannual listing of cardholders whose accounts have had no transaction activity for six (6) months. Procurement Services will advise the listed cardholders that their ProCards will be cancelled unless written justification for retention, approved by the provost or applicable vice president or designee, is provided.

Section XI. Exceptions to This Procedure

All requests for exceptions to this procedure must be in writing and approved by the requestor's department head or appropriate supervisor and emailed to the Vice President for Business Affairs and Controller. Each request should include detailed justification for the exception and the benefit to the University if the exception is granted. The Vice President for Business Affairs and Controller will review each request on an individual basis. The approval of an individual request for an exception to this procedure does not change the procedure. Documentation of the request and its disposition will be maintained in the Business Affairs online policy exceptions files.