Purchasing Card (P-Card) Procedures

Purchasing Card (P-Card) Procedures

Abstract:
All purchases made with a University of Alabama at Birmingham (UAB) Purchasing Card (P-Card) must comply with these procedures.
Effective Date:
7/1/2018
Responsible Party:
Contacts:
None Assigned
Administrative Category:
Applies To:
Faculty, Staff
Material Original Source:

University of Alabama at Birmingham

PURCHASING CARD PROCEDURES

July 1, 2018

  

Related Policies
Purchasing Card Policy
P-Card Suggested and Prohibited Uses

Related Forms
P-Card Account Maintenance Form
P-Card Agreement - Individual
P-Card Agreement - Organization
P-Card Application - Individual
P-Card
Application - Organization
P-Card Missing Documentation Affidavit
 

These procedures apply to all purchases made with a University of Alabama at Birmingham (UAB) Purchasing Card (P-Card).  Exceptions to these procedures may be authorized at the discretion of Financial Affairs’ senior administration with a documented business purpose. 

1. GENERAL INFORMATION

The UAB P-Card is designed to be a flexible form of payment that permits UAB employees to place orders for allowable purchases.  The policies and procedures governing the UAB P-Card program are designed to protect both the P-Card user and the University.  Participation in the UAB P-Card program is considered a privilege and all P-card users are expected to adhere to established policies and procedures. 

1.1   All purchases must be made in compliance with:

        ·        State of Alabama Bid Law;
        ·        Alabama Ethics Commission;
        ·        Board Rules of The Board of Trustees of the University of Alabama;
        ·        UAB Purchasing Card Policy;
        ·        UAB Expenditure Guidelines;
        ·        UAB contract vendor agreements;
        ·        UAB Enterprise Code of Conduct;
        ·        Payment Card Industry (PCI) Standards;
        ·        Cost accounting standards; and
        ·        Fiscal requirements of regulatory sponsor

1.2   Account Changes/Updates – Card changes including Cardholder name, single transaction limit, monthly credit limit, etc. may be requested using the P-Card Account Maintenance Form.

1.3   Billing Cycle – The billing cycle for all UAB P-Cards is approximately 30 days ending on or near the last day of the month.  Statements are delivered to the cardholder and any other designee (as identified on the P-Card Application – Organization) within three days of the end of  the billing cycle.

1.4  Canceling a Card – To cancel a card, send an e-mail to pcardservices@uab.edu; cut the card in half and return the card to your departmental administrator. Reasons for canceling a card may include:

                 ·        Termination of employment;
                 ·        Request by an authorized person (Supervisor, Procurement Programs Administrator etc.);
                 ·        Transfer to another department (cardholder may reapply in new department); or
                 ·        Change in job title / responsibilities.

1.5   Card Renewal – Cards are valid through the last day of the expiration month.  Cards will be renewed by the card issuer every three (3) years and should arrive shortly before or during the expiration month.  Cards will be sent to University Purchasing and the cardholder notified.

1.6   Card Security – The P-Card must be kept in a secure location at all times and may not be stored on any personal electronic device.  Compromised P-Cards (i.e. lost, stolen, suspected fraud, etc.) must be reported immediately to the card issuer using the number on the back of the card and pcardservices@uab.edu.

       ·        Organization Cards – The responsible cardholder of an organization P-Card is tasked with delegating use of the card.
                Users of the organization card must adhere to all procedures outlined by the respective UAB organization.
       ·        Individual Cards – Individual cardholders are fully responsible for all charges made to their P-Card and may not
        
        delegate use to other UAB employees.

 1.7   Credits – All credits must be returned to the card.  Under no circumstance should the cardholder or user accept the credit as cash.

 1.8   Declined Transactions – Contact the card issuer directly using the telephone number listed on the back of the card and the UAB P-Card team at pcardservices@uab.edu.

 1.9   Departmental Role – The department is responsible for ensuring compliance with the UAB P-Card Policy and these Procedures.  Each department will establish internal procedures and controls for the management, oversight, and monitoring, including monthly reconciliations, of all P-Cards issued to Cardholders in the department.  The department will also ensure approvers have the training, resources, and authority necessary to review and approve transactions. 

1.10   Disputed Transactions – Contact the vendor to resolve any discrepancy in posted charges and verify that the correction posts within the next billing cycle.  If the matter cannot be resolved with the vendor, contact the card issuer directly using the telephone number on the back of the card and notify pcardservices@uab.edu. 

1.11   Document Retention - All supporting documentation should be maintained by the organization or individual until the transaction has been fully
approved within Regions Intersect.

1.12   Documentation Requirements – Supporting documentation for all P-Card transactions must meet UAB requirements as outlined here.

1.13   Grant and Contract Purchases – Purchases charged to a Grant Account (GA) must be made in accordance with the terms and conditions of the funding agency/entity in addition to meeting the other requirements of the UAB P-Card Policy and Procedures.  Click here for additional information.

1.14   International Use – Cards are issued with domestic purchase authorization only. International use authorization may be requested using the P-Card  Account Maintenance FormAccount Maintenance Form.

1.15   Limits – P-Cards are delivered with a predetermined set of limits: overall credit limit, single transaction limit, daily transaction limit, and monthly transaction limit.  Requests to change any of these limits must be submitted to UAB P-Card Services using the P-Card Account Maintenance Form.  Charges may not be split to circumvent established card limits. Cardholders will be issued a card fact sheet along with their card detailing the limits as described previously.

1.16   Personal Purchases – Use of the P-Card to purchase items for non-University purposes, even if the user intends to reimburse the University, is prohibited.

1.17   Tax Exemption – The University of Alabama at Birmingham (UAB) is exempt from Alabama sales tax.  When making purchases within the State of Alabama, inform the vendor in advance of UAB’s sales tax exemption status.  A copy of UAB’s sales tax exemption certificate may be found here.  Should a merchant charge sales tax, it is the cardholder’s responsibility to contact the merchant and request a credit. 

2.    CARDHOLDER RESPONSIBILITIES 

2.1  Cardholder, prior to use of the card, must complete all applicable forms, agreements and training. 

2.2  Cardholder is prohibited from storing P-Card information on any device (e.g. Android Pay, Apple Pay, Google Wallet, etc.). 

2.3  Cardholder must not send the P-Card number by text messaging. 

2.4  Cardholder must report compromised P-Cards (e.g. lost, stolen, suspected fraud, etc.) immediately to the card issuer and pcardservices@uab.edu. 

2.5  Cardholder cannot use the P-Card to make personal purchases.  Confirmed use the P-Card for personal purchases or unauthorized use is considered non-compliance and may result in either revocation of card privileges or other disciplinary actions described in the UAB Purchasing Card Policy. 

2.6  P-Card transactions must be timely approved throughout the billing period. All P-Card transactions must be fully reconciled (i.e. reviewed and approved by the organization) in Regions Intersect on or before the 10th of the month following the last day of the billing cycle.  Failure to fully reconcile P-Card transactions may result in the card being disabled.

3.    PERIODIC REVIEW

Periodic reviews may be conducted to determine a department’s adherence to the P-Card policy and these procedures, including review of supporting documentation related to selected P-Card transactions.  Missing or incomplete supporting documentation may result in the revocation of P-Card privileges.

4.    OBTAINING A CARD 

4.1   Organization Cards – a P-Card Application - Organization must be submitted to P-Card Services for processing.

        ·        The application must be approved by the VP, Dean or Designee.
        ·        The card will be issued in the UAB Organization name.
        ·        The Responsible Cardholder must be in one of the following eligible assignment categories:
                   
-  01 Full Time Regula
                   -  12 Three Twelve hour shift
                   -  59 Affiliated Employees; and
        ·        The Responsible Cardholder must sign the P-Card Agreement – Organization and submit it to P-Card Services for processing.

 4.2   Roles – Organization Card 

Type*
Role
     CMCMS Login
Required
User
Responsible for securing all required documentation for card purchases
 
No
Proxy
Responsible for card transaction management:
·        Receipt upload
·        Expense allocation
·        Business purpose
Submit transaction for organization approval
 
Yes
Approver (Organization)
Review transaction for approval
 
Yes
Approver (Central)
Review transaction for approval
 
Yes

   *Organization card proxy may not be an approver.  Each transaction requires two distinct organization signatures.

4.3   Individual Cards – a P-Card Application – Individual must be submitted to P-Card Services for processing.

        ·      The application must be approved by the VP, Dean or Designee
        ·      The card will be issued in the individual’s name; however, personal credit history will not be affected by the corporate P-Card
        ·      The cardholder must be in one of the following eligible assignment categories:
                -  01 Full Time Regular
                -  03 Part Time Regular
                -  07 Interns and/or Residents
                -  12 Three Twelve-hour Shift
                -  20 Postdoctoral Scholar Trainee
                -  21 Postdoctoral Scholar Employee
                -  59 Affiliated Employees; and
        ·   The Cardholder must sign the sign the P-Card Agreement – Individual and submit it to P-Card Services for processing.

 4.4   Roles – Individual Card 

Type*
Role
CMS Login Required
Cardholder
May manage card transactions including:
·        Receipt upload
·        Expense allocation
·        Business purpose
Submit transaction for organization approval 
 
Yes
 
Proxy
(Proxy role is not required for cardholders that will be managing their own transactions in the CMS.)
Responsible for card transaction management:
·        Receipt upload
·        Expense allocation
·        Business purpose
Submit transaction for organization approval
 
Yes
Approver (Organization)
Review transaction for approval
 
Yes
Approver (Central)
Review transaction for approval
 
Yes

   *Individual cardholder or proxy may not be an approver. Each transaction requires two distinct organization signatures.

 

5. CARD MANAGEMENT SOFTWARE - REGIONS INSTERSECT

The Card Management Software (CMS) utilized by the University of Alabama at Birmingham is called Intersect and is provided by Regions.  Intersect may be accessed from the Oracle Admin Systems web page using the button labeled CMS Intersect.  Card Management Software (CMS) is used as a repository for purchase and expense allocation supporting documentation.  Transactions are available on a daily basis enabling reconciliation as often as necessary to ensure that all transactions are fully approved by the 10th of the following month.  The approval indicates that all reconciled transactions are valid and in compliance. 

 

FREQUENTLY ASKED QUESTIONS

1.    Is there a list of suggested and prohibited uses for the P-Card? Yes, a list, though not all-inclusive, of P-Card uses and prohibitions may be found here.

2.    How do I gain access to Regions Intersect?  All individuals with the role of cardholder, proxy, or approver are set up in Regions Intersect.  UAB P-Card Services will create the user account and an email will be sent to the individual.  First-time login instructions may be found here.

3.    How do I know what the limits (e.g. credit, single transaction, velocity) are on my card?  Card limits may be obtained by contacting the card issuer directly using the telephone number listed on the back of the card and are available in Regions Intersect.

4.    How do I find the available balance on my P-Card?  Available balance may be obtained by contacting the card issuer directly using the telephone number listed on the back of the card and is available in Regions Intersect.

5.    How will I know that P-Card transactions have posted to Regions Intersect?  Email notifications are sent to individuals designated as a proxy or an approver once a transaction has posted.

6.    How do I access my monthly account statement?  The monthly account statement will be sent via email to the cardholder for individual cards and those designated on the P-Card Application – Organization for organization cards.  Statements may also be accessed via Regions Intersect.

7.    How often should transactions be reconciled in Regions Intersect?  Transactions may be reconciled immediately upon posting in Regions Intersect. Cardholders and those in proxy roles are encouraged to reconcile transactions as posted.

8.    Can the P-Card be used to pay other UAB departments?  No.  A journal entry must be processed to pay internal departments.

9.    How do I dispute a P-Card transaction?  The cardholder should make every effort to settle the dispute with the merchant. If no resolution is possible, the cardholder should notify the card issuer directly using the telephone number listed on the back of the card.

10. What if I do not have the required documentation to support the P-Card transaction?  All transactions require appropriate documentation as determined by UAB Financial Review Services.  Should the cardholder fail to obtain the appropriate documentation, the P-Card Missing Documentation Affidavit must be completed and attached to the transaction in Regions Intersect.

11. Can I use the P-Card when traveling for business?  Yes. The P-Card may be used while in travel status provided the charges comply with UAB travel policy guidelines.  NOTE: Foreign travel will require international use be enabled for the card.

12. Who do I contact if my card is compromised, lost or stolen?  Contact the card issuer using the number on the back of the card and UAB P-Card Services.

13.   How do I know if a web site is secure?  A secure website will have a small padlock symbol in the address bar (or elsewhere in the browser window) and a web address beginning with https:// (the “s” stands for secure).