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General Setting Up Your Department
Budget Limitations
Separation of Duties
Cardholder Eligibility
Applying for a Procurement Card
Cardholder Purchase Limits
Card Security
Card Sharing
Lost, Misplaced, or Stolen Procurement Card
Cardholder Liability

General

For the purposes of efficiency in administration and management, only approved and trained department Cardholders are authorized to make purchases of materials and supplies, directly from the vendor when the dollar value of the purchase is $2,999.99 or less including freight. The P-Card is another means of purchasing, tailored to the needs of each department. *Warranted exceptions may be granted by the Director of Procurement & Business Services or Associate Vice President of Finance & Business Services. University Cardholders do not have to contact Procurement Services before placing an order using the P-Card for these small allowable purchases.  All University policies and procedures for the expenditure of funds must be followed.  If the department wishes to route the purchase through Procurement Services, normal procedures for processing a requisition must be followed.

Note:  The P-Card Policies DO NOT necessarily mirror the Requisition/Purchase Order Policies.

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Setting Up Your Department

The organizational structure for your success with the P-Card already exists within your department(s).  Directors / Deans / Department Heads and Budget Managers have some liberties available to them within program parameters when setting up their own P-Card Programs. More than likely those employees who are currently responsible for placing orders should be Cardholders in the P-Card program. Those employees who are responsible for processing payments on purchase orders should be Department Reconcilers. An Approving Official must be designated to sign the reconciled monthly Cardholder report.

 

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Budget Limitations

Each Director / Dean / Department Head and Budget Manager will have the ability to customize each Procurement Card according to the budget limitations of his/her department.

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Separation of Duties

A separation of duties must be followed with the P-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 P-Card transactions listed on the Procurement Card Vendor monthly statement and Reconciliation Report. For example, a Cardholder cannot also act as the Approving Official for their own transactions.

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Cardholder Eligibility

The criteria to receive a Procurement Card are as follows:

  • Individual Applicant must be employed full-time by UAH.
  • Applicant's request for a VISA Procurement Card must be approved by his/her Director, Department Head, or Dean.
  • Employee must attend a training session for policies and procedures.
  • Each individual Cardholder must sign a Cardholder Agreement prior to receiving the VISA Procurement Card.

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Applying for a Procurement Card

  1. The Dean's Office, Director, Department Head, or Budget Manager will decide who should receive a card. The Approving Official will forward a Cardholder Application Form to authorized user applicants.
  2. The prospective Cardholder will complete the application for a Procurement Card. A default, departmental Fund, Organization, and Program must be assigned, and a monthly spending limit must be determined.
  3. The Dean, Director, Department Head, or Budget Manager with budgetary responsibility for the account will approve the monthly spending limit for the Cardholder.
  4. The Dean, Director, Department Head, or Budget Manager must sign the Application for the Procurement Card and agree to the Cardholder Agreement.
  5. The Approving Official should verify the information and forward the signed and approved Cardholder Application Form to the Procurement Card Services Supervisor in Procurement Services.
  6. The Procurement Card Services Supervisor will review the Application and, if in order, transmit the information to the Bank.
  7. The VISA Procurement Cards will be delivered to the Procurement Card Services Supervisor in Procurement Services. Upon completion of the University Procurement Card training program, the Cardholder will be asked to sign the Cardholder Agreement prior to receiving the VISA Procurement Card.

 

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Cardholder Purchase Limits

Cardholder monthly purchase limits as noted on the Cardholder Application Form should be carefully decided according to the funding source or contract associated with the card and monthly spending requirements. Single transactions must not exceed $2,999.99 including freight charges. Cardholder limits will be monitored and adjusted as needed.

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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 wallets. In other cases, the cards may be stored in a secure place within the department and checked out as needed. In either case, the Procurement 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.

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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.  Therefore, the Cardholder must take great care in explaining the proper use of the P-Card to the secondary user.

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Lost, Misplaced or Stolen Procurement Card

Cardholders are required to immediately report any lost or stolen P-Card directly to the Procurement Card Vendor toll-free at  (24 hours a day, 365 days a year). The Cardholder must also notify his/her Department Reconciler and the Senior Procurement Card Site Coordinator about the lost or stolen card at the first opportunity during normal business hours.

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Cardholder Liability

The Procurement 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 Procurement Card Program Manual as well as University of Alabama in Huntsville Policies and Procedures relating to the expenditure of University funds. 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. 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. A Cardholder who makes an unauthorized purchase with the Procurement Card or uses the Procurement 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.

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