**INACTIVE POLICY**

SUPERCEDED BY VII.C.3

                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  USE OF UNIVERSITY PURCHASING CARD          POLICY: VII.A.15x
                                                      **INACTIVE**
                                                 (See Policy VII.C.3)
BACKGROUND A preferred method of purchasing commodities from outside vendors is by using the University's Purchasing Card. The current supplier providing the University Purchasing Card is American Express. (Other methods of obtaining commodities include limited purchase orders (LPOs) and purchase requisitions.) The University Purchasing Card represents the second American Express card available to the University community. Travelers on official University business also can obtain the American Express Corporate Travel Card. The essential differences between the travel card and the purchasing card are: Travel Card Purchasing Card Liable for charges incurred Cardholder University of VA The implication of the University agreeing to pay all purchases with the University Purchasing Card is that cardholders must use "good purchasing judgment" for all purchases, i.e., cardholders must agree to use their card for approved purchases only. Also, cardholders must agree to follow the policies established by the University for the use of the University Purchasing Card and agree not to charge personal items on the card. Failure to do so may result in the revocation of purchasing card privileges and disciplinary actions, including employment termination. FEATURES OF THE UNIVERSITY PURCHASING CARD ALL ITEMS THAT CAN BE PURCHASED WITH AN LPO CAN ALSO BE PURCHASED WITH A UNIVERSITY PURCHASING CARD. The purchasing card has fewer restrictions than an LPO. For example, food is not a restricted item with the purchasing card. RESTRICTED ITEMS INCLUDE: Alcoholic beverages Gifts Ammunition Prescription Drugs Carpet and Window Renovation/construction svrs. Treatments Purchases from a Commonwealth Firearms employee Flowers Radioactive materials Framing Travel-related purchases Furniture (meals, lodging, car rentals, oil, gasoline.) USE THE TRAVEL CARD FOR SUCH PURCHASES. THE UNIVERSITY PURCHASING CARD CAN PURCHASE MANY ITEMS ON THE DEMAND PAYMENT LIST, SUCH AS: Advertisements in newspapers, Organizational dues, magazines, radios, and journals, Professional fees, Books (non library), Professional licenses, Booth space, Subscriptions. Catering, Conference registration, Express mail service and freight, DOLLAR LIMIT PER TRANSACTION CANNOT EXCEED $2,000. Other spending limit restrictions (such as dollar limit per month) may be set by the department at the time of the card application. Verify such restrictions with the departmental fiscal administrator. VENDORS ACCEPTING AMERICAN EXPRESS ALSO MUST ACCEPT THE UNIVERSITY PURCHASING CARD. A "CORPORATE PURCHASING CARD VENDOR" is a vendor which specifically accepts the University Purchasing Card. Only a corporate purchasing card vendor can accept a "Cardmember Reference Number" which allows cardholders to substitute other account or object codes. EACH CARD IS ASSIGNED A "UNIVERSAL DEFAULT ACCOUNT NUMBER." This account number is the default account and object code the department listed on the cardholder's application. The account and object code will be automatically charged at the time of purchase, unless the cardholder substitutes another account or object code with the corporate purchasing card vendor at the time of purchase. EACH CARDHOLDER WILL RECEIVE A MONTHLY STATEMENT FROM AMERICAN EXPRESS. The monthly statement for the University Purchasing Card should be reconciled monthly against charge receipts and/or packing slips and also used to reconcile against the account's monthly AMO statements. Purchasing card statements and all supporting documentation should be retained for five years plus the current year. LEDGER FIVE ACCOUNTS (SPONSORED PROGRAMS). Certain restrictions may apply. ORDERING AND RECEIVING THE UNIVERSITY PURCHASING CARD Orders are placed with the University Purchasing Card Administrator in Purchasing, (924-4240). The Administrator schedules the requestor for a training class and also orders the purchasing card from American Express. After receiving the training, the requestor signs an agreement to acknowledge receipt of the card with its conditions for use. Cards cannot be released to requesters until training is complete. TERMS AND CONDITIONS TO RECEIVE THE UNIVERSITY PURCHASING CARD. The purchasing cardholder agrees that he/she: Understands one is being entrusted with a valuable tool - a University purchasing card - and that its use will produce a financial commitment on behalf of the University. The University is liable to American Express for all charges made on this card. Cardholder agrees to strive to obtain the best value for the University and agrees not to make excessive or unnecessary purchases with the card. Agrees to be the only person who may use that particular card and to keep the card number confidential. Agrees to use the card for approved purchases ONLY and agrees not to charge personal purchases. Understands that the University will audit the use of the card and take appropriate action on any discrepancies. Cardholder is responsible for maintaining documentation of all purchases per University Policy I.A.1. and University Procedure 6-12. Agrees to follow the policies established by the University for the use of the card. Failure to do so may result in the revocation of the card use privileges and disciplinary actions, including termination of employment. Agrees to return the card immediately upon request or upon termination of employment (including retirement). Changing positions will require one to turn in the old card and arrange for a new card, as appropriate. The purchasing cardholder agrees that he/she: Will notify the Corporate Purchasing Card Administrator (924- 4240) and American Express immediately if the card is lost or stolen. In addition, the purchasing card holder: Acknowledges to have received training on the proper use of the card, including restrictions, and Signs the acknowledgment indicating receipt of the University Purchasing Card, and that one has read, understood, and agreed to abide by these terms and conditions. ISSUED BY: 02/10/97 Chief Contracting Officer 7.1.15.1