Effective July 1, 2012, there was some updates to the Procurement Card policy regarding receipts, purchases on framework orders or term contracts such as Staples, Fisher, and Grainger, and sensitive minor equipment purchases. Please review via the link below.
|Please visit the UT Policy and Procedures page for the procurement card policy.|
If you receive a request from UT Audit and Consulting Services for information regarding a charge to your procurement card, please contact Joy Renninger in FIO.
We will be glad to pull invoices or receipts and work with you to provide other requested information. We will also file a copy of the response with your card file for an audit trail.
Procurement Cards are used to provide a more efficient, cost-effective alternative for departments to make purchases costing less than $5,000. The use of the procurement card will help the university, vendors, and departments by saving time and money with the consolidation of paperwork, quick payment to vendors and department will receive goods and services without delays. The use of the procurement card should be used in a business-like manner and purchases made within card spending limits and comply with policy and procedures.
All purchases made with the procurement card are tax exempt unless out-of-state, i.e. expo's, and cannot be used for personal use. Cardholder(s) will be held responsible for any purchases made outside the normal university policies.
Limitations on the use of the Procurement Card:
- Unauthorized purchases. Purchases are to be made for business use only. The following purchases are prohibited:
- Personal Use
- Purchase of any type of equipment over $1,500 (including shipping) that would be considered sensitive minor equipment (G/L account 439400)
- Transactions of $5,000 or more from the same vendor, including multiple like or unlike purchases unless the items being purchased are from an existing framework order or term contract (for details see 3 below)
- Cash advances
- Cash refunds from returned card purchases
- Gift Cards
- Personal service contracts or those contracts that are processed through the Contract system
- Entertainment purchases costing $500 and above per function Note: Entertainment-type items under $500 per function may be purchased with the procurement card, subject to the approval and documentation requirements for entertainment purchases. Such purchases may be made only from vendors that accept the card (i.e., the card is blocked at restaurants, hotels, and other travel-related vendors). The invoice must contain the date of the function, number of individuals being entertained, price per unit (meal, ticket), and total amount due. The purpose of the function must be written on the invoice or an attachment. The cost center/WBS element and the general ledger account to be charged (446200, 449200, or 449300) should also be documented on the invoice.
- Travel, including airlines, hotels, registration fees, automobile expenses, and meals (registration fees for webinars at local station may be paid with P-card).
- Cellular telephone equipment and service
- Purchases from other university departments, including bookstores
- Purchases prohibited by university fiscal policy on purchasing
- Spending Limits. Purchases are charged to the cardholder's department. Each card has specific spending limits: $4,999.99 per transaction and a preset maximum for each 30-day billing cycle, typically $20,000. Each time the card is used, an electronic process verifies that the purchase is within these predetermined limits. If a purchase violates these limits, the vendor will not accept the order.
- Departments may not split
single transactions in excess of $4,999.99 into smaller transactions. (See FISCAL
POLICY FI0410, 1.) To stay within the spending limit, departments may
not make multiple purchases of or request multiple invoices for single purchases
of identical goods or modular components from the same vendor, unless these
items are under an existing framework order or term contract. Although not an
all-inclusive list, the following situations represent split transactions and
are prohibited by this policy.
- Requesting a vendor to invoice items separately to avoid the spending limit.
- Making partial payments against a single invoice to avoid the spending limit.
- Purchasing items in groups and making multiple purchases for a single purpose to avoid the spending limit.
- Purchasing like items on a regular basis which would exceed the spending limit if purchased together, unless purchased on a current contract.
- Read and abide by University policy and procedures for use of procurement card
- Obtain best possible value for the university
- Secure card and keep card number confidential
- If at all possible, don't share account information
- Ensure state sales tax is not charged when making a purchase. The university's tax exempt number is printed on the face of the card
- Must maintain and keep a valid receipt for each purchase with as much detailed information about the purchase
- Upon receipt of the monthly statement, review the statement for accuracy, attach valid receipts, distribute charges to appropriate cost center/WBS elements with correct G/L accounts, sign the statement, and forward to FIO for processing by the 10th of every month.
- Resolve all incorrect charges and product returns with the merchant/vendor in a timely manner
Making a Purchase:
- If the intended purchase is less than $5,000, find a vendor who accepts VISA and provides the best value to the university
- Ensure vendor can provide a proper receipt
- Obtain a receipt for each purchase
- Make sure the receipt doesn't obtain sales tax
- When ordering over the telephone or internet, vendor should be told the purchase is for the University of Tennesse and you will be using a VISA Procurement card. The vendor should be given the card name, number, expiration date, and delivery address. A receipt and confirmation number should be obtain at this time. Emphasize with the vendor the purchase is exempt from state sales tax.
- Verify order to ensure accuracy, quality, and price
Returning a Purchase, Incorrect Charges, and Declined Charges:
- Cash refunds are prohibited. For a purchase made in person, return item to vendor and obtain a credit receipt.
- For returns by phone, mail or fax, the vendor should be contacted for return instructions, obtain a return authorization number or credit number and then return the item.
- On the original receipt, note the date of the return and check future statements to ensure credit was applied.
- If an item on the monthly statement is incorrect, contact the vendor immediately and resolve the disputed charge. If not resolved within 30 days, fax a completed Disputed Transaction Form to Bank of America bank at 1-888-449-2273. The bank will issue a credit for the disputed purchase until it is resolved within a timely manner. Vendors should be given a reasonable amount of time to resolve the issue, replace the product, or issue a credit.
- If a purchase is not approved by VISA, the vendor can call the bank directly to determine the reason, or the cardholder may call the bank at (888) 449-2273.
Acceptable receipts include the following:
- vendor invoices
- charge slips
- cash register receipts
- packing slips
- printout of E-mail or web page transaction confirmation
They must all include the following information:
- Itemized description of goods or services purchased; including unit price
- Vendor name
- Transaction date
- Transaction total showing Paid by Visa
- Order forms are usually not an acceptable receipt.
- Subscription renewal forms or initial request is considered a receipt. The receipts should include the inclusive dates of the subscription.
- Receipts that are not originals or do not obtain any of the information above are not considered valid receipts. Therefore, a Supplemental Receipt should be completed and attached to the receipt.
- A Supplement Receipt alone is not considered an adequate receipt. It must be replaced within 60 days with an adequate receipt.
Monthly statements are available in IRIS on the first or second business day of the month. Departments responsible for distributing charges in IRIS should print the statement and verify accurate charges. Valid receipts should be attached, statement signed, and charges distributed to appropriate cost center/WBS Element and G/L accounts in IRIS. Upon completion, statements should be forwarded to FIO by the 10th of every month for verification and filing.
Other departments within CBA not responsible for distribution of charges in IRIS will receive a printed statement from FIO by the first or second business day of the month. Upon receipt, valid receipts should be attached, statement signed, and charges noted on the statement with the appropriate cost center/WBS Element and G/L accounts for posting by FIO in IRIS. These statements are due in FIO by the 10th of every month.
Dates to Remember:
1st or 2nd Day of each month - Statements Printed
10th of every month - DUE in FIO
25th of every month - Charges distributed and Approved
For more information about Procurement Cards, please visit the UT Policy & Procedures Web page.
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