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