Pol-ProCard Program

policy procurement card procard modified Wed May 06 2020 11:29:26 GMT-0400 (Eastern Daylight Time)

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University of Louisville

OFFICIAL
UNIVERSITY
ADMINISTRATIVE
POLICY

POLICY NAME

ProCard Program

EFFECTIVE DATE

January 1, 1998

POLICY NUMBER

Card 1.01

POLICY APPLICABILITY

This policy applies to University administrators, faculty, and staff.

POLICY STATEMENT

The Procurement Card (ProCard) is the University’s credit card and must be used for purchasing certain goods costing less than $4,500.00 if accepted by the vendor and not restricted by ProCard policies. The cardholder, reconciler, and approver must comply with the established policies, procedures and responsibilities as found on the ProCard Website (http://louisville.edu/procard/policies) and shall be held accountable for use of the card. Purchasing must continue to execute contracts/departmental agreements prior to ProCard use.

REASON FOR POLICY

The purpose of this policy is to establish uniform procedures, accountability, and controls for the University of Louisville’s Procurement Card Program.

The University benefits by having a more efficient, cost-effective method of purchasing and payment for small dollar transactions. The ProCard program complements the existing purchasing and payment process. Use of the card does not replace current travel or competitive bid regulations, nor does it allow departments to bypass Purchasing policies and procedures.

RELATED INFORMATION

Employee Usage Agreement

Anyone who uses a ProCard, as authorized by the cardholder, must complete an Employee Usage Agreement.

Department Cards

Both a department card and an individual card are assigned to a single employee/responsible party.  This person controls access to the card and authorizes others to use it as necessary.

Violations of ProCard use and failure to adhere to University policies and procedures may result in suspension or revocation of a ProCard.  Consequences of misuse could also result in disciplinary actions, up to and including prosecution and termination of employment.  See Fiscal Misconduct Policy.

Types of ProCard Purchases:
Amazon Business
Procure-to-Pay Summary/Guidelines (effective January 1, 2015)
Suggested Uses 

  • For guidance as to the appropriate payment method based on the type of commodity or service you are procuring, refer to the Procure-to-Pay Grid

Restricted Purchases

  • A listing of restricted purchases can be found here.

Equipment Purchases

  • The ProCard may be used to pay for equipment valued less than $5,000.

Laboratory Chemicals

  • Each department is responsible for obtaining a Material Safety Data Sheet for every chemical ordered.

Alcohol/Entertainment Purchases

  • The ProCard is the required method of payment for business meals, entertainment, and alcohol expenses.

Internet Purchases

  • On-line purchases must be made with vendors using a Secure Sockets Layer (SSL) browser session.

Delivery of Goods

Goods purchased with the ProCard must be shipped for "desktop delivery" to the designated department or to Central Receiving. 

Number of Cards

ProCards are limited to one (1) card per individual, unless the card will be attached to an externally sponsored activity. Refer to the Definition of Sponsored Activities.

Spending Limits  

$4,500.00 is the default limit per transaction.  The default monthly limit per card is $15,000.00.

Returns and/or Exchanges

The cardholder is responsible for working with the merchant/supplier for the return of incorrect, duplicate, or damaged merchandise purchased with the ProCard.  

Amazon sales tax reimbursement 

Review the instructions on the Procurement Card website for instructions on receiving a tax exemption on Amazon.com orders.

Sales Tax Exemption

University purchases are exempt from Kentucky Sales Tax.

PROCEDURES

Apply for a ProCard

Disputed Transactions

The cardholder is responsible for contacting the vendor and/or PNC Bank about any erroneous charges, returns or disputed items.

RESPONSIBILITIES

Cardholder Responsibilities

The employee who has been issued a ProCard and is accountable for all transactions on their card.

  • ProCard Security/Possession- the ProCard is to be protected by the same safeguards that are applied to the security of a personal credit card.
  • Receipt/Recordkeeping Responsibilities-the cardholder should maintain files by billing cycle. Included in each file should be original itemized receipts/invoices, PNC Bank statements (for billing cycles that had transaction activity), and the transaction summary log (TSL).

Approver Responsibilities

The employee designated to verify that purchases are appropriate for the funding source and are for the benefit of the university. The approver must not be a subordinate in the direct reporting line of the cardholder. Furthermore, the cardholder cannot be an approver of his/her own card.

Funding Reviewer Responsibilities 

The employee designated to ensure all charges are allocated to the appropriate speedtype and account code by the monthly cut-off date. A reconciler may also be a cardholder. 

Proxy Responsibilities

The employee designated for attaching receipts/backup documentation, and adding a business purpose. They may also have the added responsibility of ensuring the charges are allocated to the appropriate speedtype and account code.

UBM Responsibilities

Each department's Unit Business Manager is responsible for following items in terms of ProCard oversight.

ADMINISTRATIVE AUTHORITY

Vice President for Finance and Chief Financial Officer

RESPONSIBLE UNIVERSITY DEPARTMENT/DIVISION

Card Services
Houchens Building, University of Louisville
Louisville, KY 40292
502-852-7520
procard@louisville.edu

HISTORY

Revision Date(s): September 18, 2017, May 10, 2018

Reviewed Date(s): February 14, 2020

The University Policy and Procedure Library is updated regularly. In order to ensure a printed copy of this document is current, please access it online at http://louisville.edu/policies.