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Policy: VII.C.3x2 (inactive)

Issued: February 10, 1997

Owner: Director of Procurement Services

Latest Revision: October 21, 2003

USE OF THE UNIVERSITY PURCHASING CARD


**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 

 

1.0 Purpose

This policy describes the general guidelines for using the University Purchasing Card.

The University Purchasing Card is also sometimes referred to as the "Corporate Purchasing Card," the "P-Card," the "Procurement Card," the "UPC," and the "AMEX Card."

The University Purchasing Card is not the University Travel Card. Please see American Express Travel Card -- Policy VI.B.10 for information on the University Travel Card.

2.0 Policy [Top]

2.1  Ownership

The University Purchasing Card program is managed by the Purchasing Card Administrator in Procurement Services. The Purchasing Card Administrator issues cards, conducts training for prospective cardholders, approves changes to spending limits, and cancels cards as appropriate.

At the University of Virginia's College at Wise and the Southwest Center, the UVA-Wise Purchasing Office Director conducts training. This policy applies to all UVA locations.

2.2  Introduction

The University Purchasing Card Program is designed to enable authorized individuals to make official purchases of small dollar goods and services quickly, directly, and with as little paperwork as possible.

University personnel interested in participating in the Purchasing Card program must first obtain their supervisor's approval. Student Resident Assistants who wish to participate in the program must have prior approval from the University's Residence Life Office. University Medical Center, UVA Foundation, and non-University employees interested in participating in this program must be sponsored by a University department.

The University Purchasing Card may be used for official University of Virginia purchases only.

The University of Virginia accepts the liability for all charges made with the Purchasing Card that are consistent with University Purchasing Card Policy and Procedure.

The University Purchase Card may not, under any circumstances, be used for personal expenditures, cash advances, or to obtain store credit.

Cardholders are responsible for following all rules governing the use of the Purchasing Card.

Individuals who violate University Purchasing Card policy and procedure may have their cardholder privileges suspended or permanently revoked, and may face additional disciplinary action including termination of employment.

2.3  Types of Purchases

The following list is an example of just some of the types of items that may be purchased with the University Purchasing Card:

Advertisements in newspapers
Air and rail tickets
Books (non-library)
Booth space
Car rental through the University motor pool
Gas and oil for motor-pool or University-owned vehicles
Catering
Conference registration
Express mail service and freight
Laboratory supplies
Magazine and journal subscriptions
Office supplies
Professional organizational dues, fees, and licenses
Unrestricted goods and services

2.4  Spending Limits and Restrictions

Cardholders must comply with the same state procurement regulations as are in effect for any other means of payment.

Requirements for competition prior to purchasing with the University Purchasing Card are generally based on the dollar value of the order, and all purchases are subject to the Guidelines for Competition on the Procurement Services website.

Regardless of competition requirements, it is expected that cardholders will exercise good stewardship of the University's resources and make no excessive or unnecessary purchases.

There are seven general rules or restrictions governing the use of the Purchasing Card:

1.  Spending Limits Per Transaction and Per Month
2.  Purchases from the Same Vendor
3.  Restricted Goods and Services
4.  Merchandise Returns
5.  Purchasing Card Security
6.  Card Reconciliation and Documentation
7.  Additional Restrictions

 
   
1. Spending Limits Per Transaction and Per Month -- Each card has individually established limits on how much can be spent per transaction and how much can be spent per month.  
     

At present, the highest available spending limits are $4,999 per transaction and $7,500 per month.

Not all cardholders will enjoy the same spending limits because these are established on a case by case basis by the cardholder's department.

Once spending limits have been set, cardholders may, with the approval of their supervisor, request that their monthly spending limit be raised. The Request for Exemption to the Monthly Spending Limit form may be found on the on the Procurement Services web site or on the University Forms Directory.

Cardholders may also apply in advance for a special waiver when the cost of air or rail tickets exceeds the cardholder's established spending limits. This procedure is described on the Procurement Services website.

Otherwise, cardholders may NOT make purchases that exceed their established transaction and monthly spending limits. Any cardholder who authorizes a charge in excess of established transaction limit may have his or her card suspended for three months. A second offense may result in permanent revocation of the card.

Splitting orders for the purpose of circumventing transaction limits is NOT allowed. Any cardholder who knowingly splits an order may have his or her card suspended for three months.

Violation of this policy may result in revocation of card privileges for a minimum of three months. Repeat offenses may result in permanent loss of card privileges.

 

   
2. Purchases from the Same Vendor -- Regardless of individually established spending limits, the Purchasing Card may NOT be used to buy goods or services from the same non-contract vendor which total $5,000 or more annually. Purchases of this type require the submission of a Purchase Requisition. Please see Use of the University Purchasing Card -- Procedure 7-105 for the special requirements of preparing a Purchase Requisition for this type of situation. [Top of List]
     
A list of contract vendors may be found on the Procurement Services web site.  

   
3. Restricted Goods and Services -- There are also restrictions on the specific types of goods and services that may be purchased with the card. [Top of List]
     

The following items may not be purchased with the University Purchasing Card:

General Restrictions

The University Purchasing Card may NOT be used for any of the following general categories:

Purchases from an employee of the Commonwealth
Purchases on Medical Center accounts
Gifts under any circumstances

Travel Restrictions

The University Purchasing Card MAY be used to purchase air and other mass transit tickets, including shuttles.

"Motor Pool" contract car rentals from Enterprise Virginia
Rent-a-Car and fuel for same are also permitted.

NO OTHER TRAVEL expenses are permitted. This means that all other car rental expenses, fuel, lodging, limos, and taxis, etc. are NOT permitted.

Additional Restricted Items

The University Purchasing Card may NOT be used for any of the following miscellaneous goods and services:

Alcoholic beverages
Ammunition
Automobiles
Bus charters
Carpet
Car rental expenses (other than through the University's "motor pool" contract with Enterprise Virginia Rent-a-Car)
Firearms
Flowers
Framing
Furniture
Gifts
Lodging
Prescription drugs
Radioactive materials
Renovation/construction services
Restaurant meals
Security systems
Tent rentals or purchases (non-camping)
Non-mass-transit transportation, such as limousines and taxis
Window treatments


   
4. Merchandise Returns -- Whenever cardholders return merchandise they must be sure to produce the original receipt and specifically request that the vendor credit the return to the Purchasing Card. Purchasing cardholders must not accept "store credit" for returned items. Any cardholder who accepts store credit for returned merchandise may have his or her card revoked. Cardholders must notify the Purchasing Card Administrator in Procurement Services if a vendor refuses to credit the Purchasing Card for returned items. [Top of List]

   
5. Purchasing Card Security -- The Purchasing Card may only be used by the person to whom the card has been assigned. Cardholders may never lend their cards to another person or use someone else's Purchasing Card. [Top of List]
       
 

Violation of this policy will result in revocation of card privileges for a minimum of six months. Repeat offenses will result in permanent loss of card privileges.

Cardholders must never fax their card numbers to a vendor or place orders over the Internet unless they can verify the security of the vendor's web site. Cardholders must consult the "Purchasing Card Security" section of Purchasing Card Procedures when dealing with fax or Internet orders.

 

   
6. Card Reconciliation and Documentation -- Cardholders must keep records and reconcile their card statements as prescribed in the "Card Reconciliation and Documentation" section of Use of the University Purchasing Card -- Procedure 7-105. Any cardholder who fails to follow this procedure may have his or her card permanently revoked. [Top of List]
 
   
7. Additional Restrictions -- There may be additional restrictions placed on the use of the Purchasing Card depending on the cardholder's status. For example, UVa staff are subject to possible additional restrictions established at the departmental level; grant holders may be subject to additional restrictions as part of the terms of their grant; Resident Assistants are subject to additional restrictions established by the University's Residence Life Office. [Top of List]
       
  Individual cardholders must comply with all additional restrictions as applicable.  
 
   

Reminder: As a non-profit institution, the University of Virginia is exempt from Virginia sales tax on all goods and services except prepared foods. It is the cardholder's responsibility to claim this exemption whenever using the Purchasing Card. The University of Virginia will not accept liability for such over-payments. The State Sales and Use Tax Certificate of Exemption Form may be obtained from the Procurement Services web site.

3.0 Definitions [Top]

4.0 References [Top]

This policy corresponds to, and should be read in conjunction with, Use of the University Purchasing Card -- Procedure 7-105.

Please see the Procurement Services web site for additional contact information, related forms, the Purchasing Card training schedule, and for information on any recent changes in policy or procedure affecting the University Purchasing Card.

5.0 Approvals and Revisions [Top]

Previous version in effect from 2/10/97 to 5/03 available in policy archive.

Previous version in effect from 5/03 to 10/21/03 available in policy archive.


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