1. Cardholder Training Program Materials Management
UT-Pan American
Procurement Card
Cardholder Training Program
Materials Management

2. What Is the Procurement Card (Procard)?
The Procard is a MasterCard which gives cardholders the freedom and authority to make small-dollar purchases without the assistance of Purchasing, an alternative to the Small Purchase Order Program.

3. What Does It Do?
Reduces time and paperwork required to purchase low-dollar items
Speeds up payment to vendors
Helps departments purchase goods/services online and/or from vendors who will not accept PO’s
Expedites receipt/delivery of goods and services

4. Authorization of Procard Program
Texas Administrative Code Title 34, Part 1, Chapter 5, Subchapter E, Rule §5.57
Texas Government Code, §
The University of Texas Board of Regents Rules and Regulations Series 10501
The University of Texas System Administrative Rules Series 22601
UTPA Handbook of Operating Procedures, Section

5. Program Contacts
Norma Dryer Extension: 7021 Program Administrator/ Director of Materials Management
Cris Muñoz Extension: 7191 Program Assistant , Materials Management
Ana Salinas Extension: 5368 Accounts Payable, Office of the Comptroller

6. What Will You Learn? Guidelines for Procard How to use the Procard
Unacceptable uses of the Procard
How to resolve disputed charges
How to reconcile your monthly statements Procurement Program Manual,

7. Guidelines for Procard
Complete the application form for each Cardholder (
One University account per Procard
Cardholder must be full-time employee with department requesting card.
Separation of duties for Cardholder, Project Manager, and Reconciler.
Cardholder, Reconciler, Project Manager, and Department Head must receive Procard training before card will be issued and complete training once a year thereafter through the University’s Training Post.
Spending Limits:
Maximum Single Purchase Limit: $1,000
Spending Limit Per Billing Cycle: $5,000
Procard to be used only for authorized purchases as indicated in HOP Policy and Program Manual.

8. Unacceptable Uses for Procard (Many will reject at the point of sale)
Alcoholic Beverages
Ammunition
Animals
Any items or services prohibited by UTPA policy and/or state law
Cash advances
Cash handling items
Consulting services
Controlled substances
Fuel
Gifts and gift certificates, donations, contributions & scholarships
Items for personal use
Items or services required to be provided by University departments
Postage
Professional Services
Purchases from University employees
Purchases requiring signature of vendor agreements or contracts
Reimbursements to employees
Tickets for events required to be delivered to Office of Comptroller
Travel Expenses
Donations
Fines

9. Unacceptable Uses - Continued
Controlled Assets with a value of $500 to $4, (computers, printers, fax machines, scanners, stereo systems, cameras, etc.).
Hazardous materials require review and approval from the Department of Environmental Health & Safety.
Membership Dues are not allowed but registration fees can be purchased (Please state on Oracle Travel Requisition that you used Procard).
Prohibited purchases on State Funds
Flowers, floral arrangements, and plants
Food and Entertainment
Grants & Contract Accounts
Refreshments/Food
Entertainment
Donations
Fines

10. Project Manager’s Responsibility
Assign individual cardholder spending limits.
Issue Procard to cardholder.
Maintain control of Procards.
Approve Procard purchases.
Assure compliance with Program Procedures.
Ensure sufficient funds are available.
Approve monthly Procard Reconciliation statements.
Submit inventory certification to the Program Administrator semi-annually.
Maintain required documentation in a central location for current fiscal year and three prior years.

11. Cardholder’s Responsibility
Secure card when in your possession.
Comply with University Policy and Program Manual.
Use for “official UTPA business only”. (No personal purchases)
Don’t use for unacceptable purchases.
Record purchases in Procard Transaction Log.
Turn in receipts to Reconciler with Monthly Transaction Log.

12. Reconciler’s Responsibility
Collect Monthly transaction logs and all supporting documentation from Cardholder.
Perform reconciliation within 7 days of the closing date of the Billing Cycle (usually the 5th of each month).
Review purchases for any unauthorized transactions and report to Project Manager.
Maintain all Procard records for Project Manager.
Assure a Expense Report is completed and signed by Reconciler, Project Manager and Department Head (if different than Project Manager).

13. How to Make a Purchase
Obtain permission from Project Manager to make purchase.
Verify with Project Manager that budgeted account has sufficient funds available.
Make sure that purchase is an allowed purchase and does not have restrictions:
Printing
Texas Industries of Blind & Handicap (TIBH) Compliance
State Contract
Unacceptable Uses
Identify the supplier
SCPA Vendor Status Check on purchases over $500.
Obtain Pricing from supplier (include shipping, handling, postage, etc.)

14. Completing the Purchase
Ensure that total amount of purchase will not exceed Procard limit.
Make the purchase by providing supplier with card information.
University’s Tax Exemption Status
Inform supplier that all goods must be shipped to Central Receiving with the following information:
Cardholder’s name Procard Purchase Campus Address
Central Receiving 1407 East Freddy Gonzalez Edinburg, Texas
Request a order confirmation from vendor.
Record your purchase in the transaction log, Sample Transaction Log

15. Receiving Procard Purchases
Central Receiving will receive goods and deliver to person addressed on shipping label.
Cardholder must inspect all goods upon receipt.
The Cardholder is responsible to work with supplier to correct any problems with the purchase.
If items need to be returned, Central Receiving will provide assistance.

16. How To Resolve Disputes
Cardholder will contact the supplier and try to resolve the dispute directly.
Disputes on taxes must be handled by the Cardholder.
If you cannot resolve matters with the supplier, complete a “Statement of Disputed Item” form and send it to JP Morgan/Chase Bank.

17. Reconciliation of Procard Statement
Use JP Morgan/Chase Bank Smart Data Online (SDOL) for reconciliation.
Reconciler must provide the following information on SDOL for each purchase:
Object Codes – Expenditure Type
TIBH Exemption
Purpose of Purchase
State Vendor ID (if known)

18. Card Transactions on SDOL

19. Lost or Stolen Cards Report lost or stolen cards immediately to:
JP Morgan Chase:
Program Administrator
Report will be made to Internal Auditor and State Auditor’s Office
University Police
Department is responsible for all charges prior to notification of lost/stolen cards.

20. Other Considerations End-of-Fiscal Year Considerations
Excess Obligations
Printing
Waiver from University Print Shop/Relations Office, UTPA Handbook of Operating Procedures, Section L
Technology Purchases
Historically Underutilized Businesses (HUB)
Split Purchases not allowed
Transfer of Cardholders

21. Card Termination
A Procard may be terminated if one of the following condition occurs:
Cardholder terminates employment with University
Unauthorized use of the Procard
Insufficient funds for Procard purchases
Purchase of prohibited items
Failure to follow Procard procedures or to comply with State rules and/or University purchasing policies and procedures

22. Billing, Payment, and Account Distribution
A summary bill will be mailed to the Accounts Payable Office.
Accounts Payable will electronically pay the summary bill in full after the account is reconciled.
Charges for the summary bill will be applied to the appropriate budget account.

23. Procard Security & Compliance Steps
Periodic audits will be conducted on individual cards by Program Administrator and University Internal Audits.
Project Manager must retrieve documentation upon request and send to Program Administrator.

24. How to use SDOL
Program Administrator will set up username and initial password for use on SDOL.
Using Internet browser, login in to JP Morgan/Chase SDOL website, (