The University of Texas The University of Texas Medical BranchMedical Branch

Procurement Card Procurement Card ProgramProgram

March 1st, 2015March 1st, 2015

Procurement Card Program Administrator:Procurement Card Program Administrator:

John HallJohn Hall

Ext. 23592Ext. 23592

Procurement CardProcurement CardGuidelinesGuidelines

Used to purchase Used to purchase NON-Restricted NON-Restricted goods & services for official UTMB goods & services for official UTMB business within a Cardholder’s pre-business within a Cardholder’s pre-established limitestablished limit

All purchases are exempt from State of All purchases are exempt from State of Texas sales taxesTexas sales taxes

Transactions may not be split to divide Transactions may not be split to divide large purchases which are over the large purchases which are over the cardholder’s limitcardholder’s limit

Compliance GuidelinesCompliance Guidelines

The Procurement Card Program: The Procurement Card Program: Will be administered and monitored for Will be administered and monitored for

compliance with all applicable federal, compliance with all applicable federal, state, and local lawsstate, and local laws

Is Is NOTNOT intended to supercede or bypass intended to supercede or bypass any compliance with U.T. or U.T.M.B. any compliance with U.T. or U.T.M.B. rules or regulationsrules or regulations

Must comply with the UTMB HUB Must comply with the UTMB HUB Program Guidelines and GoalsProgram Guidelines and Goals

Not For Purchase OrdersNot For Purchase OrdersPayments!Payments!

Procurement Card Payments must only be Procurement Card Payments must only be non-purchase order transactionsnon-purchase order transactions

If a UTMB purchase order has been issued to If a UTMB purchase order has been issued to the vendor, the payment must the vendor, the payment must notnot be made be made with the Procurement Cardwith the Procurement Card

Why? The encumbrance created by the Why? The encumbrance created by the purchase order will purchase order will notnot be liquidated and be liquidated and funds will funds will notnot be released be released back to the back to the department budget balancedepartment budget balance

Possible Duplication of PaymentPossible Duplication of Payment

Simplified ProcurementSimplified Procurement Card Purchasing Card Purchasing

Cardholder makes authorized purchases from Cardholder makes authorized purchases from approved venders.approved venders.

Cardholder logs Purchase in Transaction LogCardholder logs Purchase in Transaction Log Goods are shipped by supplier and received by Goods are shipped by supplier and received by

CardholderCardholder Cardholder attaches receipts and other Cardholder attaches receipts and other

supporting documentation to Transaction Logsupporting documentation to Transaction Log Department Coordinator reconciles monthly Department Coordinator reconciles monthly

statements with Transaction Logs for accuracystatements with Transaction Logs for accuracy Department Coordinator retains all Department Coordinator retains all

documentation according to UTMB Records documentation according to UTMB Records Retention ScheduleRetention Schedule

Procurement Card Procurement Card PaymentsPayments

Citi Bank pays merchants in 24 to 48 hoursCiti Bank pays merchants in 24 to 48 hours Citi Bank provides detailed statements for Citi Bank provides detailed statements for

UTMB Cardholders to the Procurement Card UTMB Cardholders to the Procurement Card Program Administrator for distribution to Program Administrator for distribution to Department CoordinatorsDepartment Coordinators

Detailed statements for each card will be Detailed statements for each card will be distributed monthly to the Department distributed monthly to the Department Coordinators for reconciliationCoordinators for reconciliation

Employees do not pay their own monthly Employees do not pay their own monthly statementsstatements• The program does not affect your credit The program does not affect your credit

rating in any wayrating in any way

Charge AllocationCharge Allocation

Each Procurement Card has an assigned Each Procurement Card has an assigned default funding source.default funding source.

All charges will post to the default fund All charges will post to the default fund source PeopleSoft CFS unless the Dept. source PeopleSoft CFS unless the Dept. Coordinator re-allocates the charge to Coordinator re-allocates the charge to another approved fund source.another approved fund source.

A federal fund source or a project may A federal fund source or a project may notnot be used as a Primary fund source, unless a be used as a Primary fund source, unless a Secondary Fund Source is provided as wellSecondary Fund Source is provided as well

Dispute ResolutionDispute Resolution

The Cardholder is responsible for resolving all The Cardholder is responsible for resolving all disputed charges disputed charges

First, Cardholder contacts the vendor to see if First, Cardholder contacts the vendor to see if dispute can be resolved with the vendordispute can be resolved with the vendor

If the dispute cannot be resolved, the Cardholder If the dispute cannot be resolved, the Cardholder must complete a “Statement of Disputed Items” must complete a “Statement of Disputed Items” form and send it to Citi Bank ASAP.form and send it to Citi Bank ASAP.

Failure to take immediate and appropriate action Failure to take immediate and appropriate action violates the Cardholder’s delegated fiduciary violates the Cardholder’s delegated fiduciary responsibility to safeguard UTMB assets and responsibility to safeguard UTMB assets and could result in a loss to UTMB and Card could result in a loss to UTMB and Card cancellationcancellation

Reporting Lost/Stolen Reporting Lost/Stolen CardsCards

Call 1-800-248-4553Call 1-800-248-4553

The Cardholder Must:The Cardholder Must: Notify Citi Bank Notify Citi Bank IMMEDIATELYIMMEDIATELY!!!!

• The University is responsible for all charges The University is responsible for all charges incurred until notificationincurred until notification

• The bank will inactivate your card and issue a The bank will inactivate your card and issue a new cardnew card

Notify, in writing, the Procurement Card Notify, in writing, the Procurement Card Program Administrator, the Department Program Administrator, the Department Coordinator, and Department Head Coordinator, and Department Head immediatelyimmediately

Responsibility of Responsibility of Procurement CardHolderProcurement CardHolder

Attend training/online classes when notified toAttend training/online classes when notified to Understand your fiduciary responsibility to UTMB Understand your fiduciary responsibility to UTMB

and consequences for misuse of State property and consequences for misuse of State property Read and understand the Program GuideRead and understand the Program Guide Make only authorized purchases within Make only authorized purchases within

transaction and monthly limits excluding State transaction and monthly limits excluding State of Texas sales taxesof Texas sales taxes

Retain all receipts/support documentation and Retain all receipts/support documentation and maintain up-to-date organized Transaction Logmaintain up-to-date organized Transaction Log

Resolve Resolve ALLALL disputed charges in an expeditious disputed charges in an expeditious and professional business like mannerand professional business like manner

Key Points for the Key Points for the CardholderCardholder

Your Procurement Card is UTMB PropertyYour Procurement Card is UTMB Property Your Procurement Card is issued in your nameYour Procurement Card is issued in your name

• All purchases made on your Procurement All purchases made on your Procurement Card must be for official UTMB business onlyCard must be for official UTMB business only

• You are responsible for the security of the You are responsible for the security of the Procurement Card and the transactions Procurement Card and the transactions made with itmade with it

Failure to follow the guidelines when using the Failure to follow the guidelines when using the Procurement Card, could result in disciplinary Procurement Card, could result in disciplinary action up to and including termination, and action up to and including termination, and possible criminal prosecution.possible criminal prosecution.

Department Coordinator’s Department Coordinator’s ResponsibilitiesResponsibilities

Disseminate InformationDisseminate Information Primary Contact for Procurement Card Primary Contact for Procurement Card

Program AdministratorProgram Administrator Verification of DocumentationVerification of Documentation Insure compliance with UTMB Records Insure compliance with UTMB Records

Retention scheduleRetention schedule Allocation of transactions to appropriate Allocation of transactions to appropriate

fund sourcefund source Oversee Department Internal ControlsOversee Department Internal Controls

Specific Problem AreasSpecific Problem Areas

No ReceiptNo Receipt Sales tax chargedSales tax charged Inappropriate item purchased- Food, Inappropriate item purchased- Food,

Gifts, Awards or Prizes to EmployeesGifts, Awards or Prizes to Employees No Memberships Allowed!No Memberships Allowed! No equipment Allowed!No equipment Allowed! No Office Supplies Allowed!No Office Supplies Allowed! Failure to keep complete records, and Failure to keep complete records, and

transaction log, in an organized fashion transaction log, in an organized fashion

Specific Problem AreasSpecific Problem Areas

Incomplete delivery address instructions Incomplete delivery address instructions on packages (Purchaser full name, bldg on packages (Purchaser full name, bldg address, ”L” room number, and contact address, ”L” room number, and contact phone number)phone number)

Failure to confirm Vendor “Warrant Hold” Failure to confirm Vendor “Warrant Hold” status and note on the Transaction Logstatus and note on the Transaction Log

Failure to confirm HUB status and note Failure to confirm HUB status and note on the Transaction Logon the Transaction Log

No Authorized Signatures on Log when No Authorized Signatures on Log when using non-default funding sources using non-default funding sources

Compliance IssuesCompliance Issues

Institutions of higher education (UTMB) Institutions of higher education (UTMB) must verify a vender must verify a vender isis notnot “ “On On WarrantWarrant Hold”Hold” with the state of Texas with the state of Texas for all non-emergency purchases over for all non-emergency purchases over $500. $500.

Purchase of services – IRS 1099 Purchase of services – IRS 1099 Records RetentionRecords Retention No Equipment allowed on P-Card, use No Equipment allowed on P-Card, use

PO process only !PO process only !

Very Important Cardholder Very Important Cardholder Agreement StatementAgreement Statement

II AGREE TO USE THIS CARD FOR UTMB APPROVED PURCHASES AGREE TO USE THIS CARD FOR UTMB APPROVED PURCHASES

ONLYONLY and agree not to charge any personal purchases on my UTMB and agree not to charge any personal purchases on my UTMB Procurement Card. I understand that UTMB will audit the use of my card Procurement Card. I understand that UTMB will audit the use of my card and report any irregularities or discrepancies to the Vice President of and report any irregularities or discrepancies to the Vice President of Business Operations and Facilities. Business Operations and Facilities.

  

I FURTHER UNDERSTANDI FURTHER UNDERSTAND that that improper useimproper use of my UTMB Procurement of my UTMB Procurement Card may result in Card may result in disciplinary action including termination of disciplinary action including termination of employment and possible legal prosecutionemployment and possible legal prosecution. Should I fail to use this . Should I fail to use this card properly, I understand that UTMB will withhold any and all payments card properly, I understand that UTMB will withhold any and all payments from me until such time that an amount equal to the amount of the debt from me until such time that an amount equal to the amount of the debt or the discrepancy is repaid by me regardless of my UTMB employment or the discrepancy is repaid by me regardless of my UTMB employment status.status.

Cardholder SignatureCardholder Signature

RememberRemember

Dept. Coordinators can not be Dept. Coordinators can not be CardholdersCardholders

All fieldsAll fields on the ”Transaction Log” on the ”Transaction Log” must be completedmust be completed

Warrant Hold - Purchases of $500 or Warrant Hold - Purchases of $500 or moremore

Important ContactsImportant Contacts

Citi Bank Contact NumberCiti Bank Contact Number 1-800-248-45531-800-248-4553 Procurement Card Program Procurement Card Program

Administrator:Administrator:

John Hall, 409-772-3592John Hall, 409-772-3592 State of Texas Vendor Hold StatusState of Texas Vendor Hold Status

http://intranet.utmb.edu/warranthold/http://intranet.utmb.edu/warranthold/

Texas HUB Vendor Texas HUB Vendor http://www.window.state.tx.us/procurement/cmbl/hubonly.htmlhttp://www.window.state.tx.us/procurement/cmbl/hubonly.html

Inherent P-Card RisksInherent P-Card Risks

Failure to follow GuidelinesFailure to follow Guidelines

Incorrect Classification of ExpendituresIncorrect Classification of Expenditures

Fraud / TheftFraud / Theft

Bad PublicityBad Publicity

QUESTIONSQUESTIONS

Procurement Card Program Procurement Card Program Administrator:Administrator:

John HallJohn Hall

Ext. 23592Ext. 23592