75.37 - UI Purchasing Card
Last updated August 24, 2005 (Moved from Chapter 60 - June 6, 2007)
A. General. The purpose of the University of Idaho Purchasing Card program is to establish a more efficient, cost-effective method of purchasing and paying for small dollar transactions. The Program is designed to replace department purchase orders, eliminate use of petty cash, and personal funds reimbursed by a claim voucher for small dollar purchases. The Purchasing Card can be used for in-store purchases as well as mail, phone, or fax orders.
A-1. Purchasing Criteria. The following general guidelines identify what the Program is not intended to do:
- Avoid or bypass appropriate procurement or payment procedures. Rather, the Program complements the existing processes available.
- To be used for purchases over $5,000 [only with departmental approval].
- To be used for travel expenses or personal items. [Note: Use of the Card not in accordance with the guidelines established for this Program may result in personal liability.]
B. Card Control. Department heads and/or fiscal officers submit requests for cards through Accounts Payable. A Purchasing Card Cardholder Account Form is sent to Accounts Payable for initial review and approval. Upon approval, University of Idaho Cardholder Agreements are prepared and a cardholder training session is scheduled for those individuals receiving the card(s). [Note: For those employees outside the Moscow area, other arrangements for pick-up will be made with the Purchasing Card Administrator.]
B-1. Card Cancellation. To cancel a Card, immediately call, or notify in writing, the Purchasing Card Administrator. The administrator will notify the bank and deactivate the card. The card should be cut in half and immediately forwarded to Accounts Payable.
B-2. Lost or Stolen Cards. If your Purchasing Card is lost or stolen, immediately notify Bank One at (800) 316-6056, or Accounts Payable at (111) 111-5389.
B-3. Revising “Charge-To” Information. The “charge-to” or specific account and location codes for each card may be changed by contacting the Purchasing Card Administrator at (111) 111-5379. [ed. 6-07]
B-4. Purchasing Card Security. Only the authorized Cardholder (or designated user) may use the Card. Cardholders must have a signed agreement on file with the Purchasing Card coordinator.
B-5. Unauthorized Charges and Liability. As a corporate account, Bank One will only hold the university accountable for all authorized charges. According to Bank One, unauthorized charges are charges from lost or stolen cards after they have been reported. In other words, the university is responsible for charges until the card is reported lost or stolen. If the card is reported stolen, the university is not responsible for any charges made after that time.
C. Process. Order and Receipt of Goods. The Cardholder is responsible for ensuring receipt of materials and will follow-up with the vendor to resolve any delivery problems, discrepancies, or damaged goods.
C-1. Resolving Errors. The Cardholder is responsible for following up with the vendor or bank on any erroneous charges, disputed items, or returns as soon as detected. Disputed billing can result from failure to receive goods/services, fraud, misuse, altered charges, defective merchandise, incorrect amounts, duplicated charges, unprocessed credits, etc. The Cardholder should first contact the vendor to resolve any outstanding issues.
C-2. Resolving Disputes. If the Cardholder is unable to reach agreement with the vendor, contact Bank One’s Customer Service Center at (800) 316-6056 (7:00am - 7:00pm (Central Time), Monday through Friday). The bank will ask the Cardholder to complete a Dispute Form and fax or mail the completed form to the bank. [Note: A copy of the dispute form should be sent to Accounts Payable at mail stop 4244.]
C-3. Credits and Returns. Each credit received for purchase returns or exchanges should be documented. To obtain a copy of a charge or credit slip, call Bank One Customer Service Department at (800) 316-6056. There is a $5.00 charge for each copy which will be billed to your Card account.
D. Procedures. Billing, Payment, and Accounting Process. UI Accounts Payable pays Bank One every two weeks for the previous two weeks’ posted transactions. Accounts Payable will distribute the charges based upon each Card’s pre-assigned unique organization code bi-weekly. Each department/division is responsible for allocating charges to the appropriate organization and account code on a timely basis.
D-1. Sample of Required Record Keeping and Documentation. To facilitate reconciliation, substantiation, and reallocation of charges, the Cardholder is required to provide detailed information about their credit card purchases. The original transaction document (e.g., credit card slips, packing slips, etc.) will generally provide information as to when the transaction occurred, who the vendor is, location, purchase amount, and the purchaser identification. Additionally, the Cardholder must provide a description of the item purchased, as well as the UI budget and account code charged for the expense. The Cardholder must maintain a summary of charges to ensure reconciliation and distribution of charges. [Note: Reallocation of charges must be completed every two weeks. This activity is dependent upon card users providing complete transaction documentation on a timely basis to departmental record keepers. This activity is subject to continual review. A pattern of non-compliance will be the basis for revocation of the Purchasing Card.]
E. Information. Please address any questions or concerns regarding the Purchasing Card Program to the Purchasing Card Administrator at (111) 111-5379 or reference the University of Idaho Purchasing Card User Manual – January 1997. [ed. 6-07]