Procurement & Campus Services

Procard User Guide Index

 

Procard User Guide   - Chapter 1


Procard Policies and Procedures

ã1998 by

University of Massachusetts
Procurement Department
Amherst, MA 01003
Phone (413) 545-0361    Fax (413) 545-1643

Updated 10-2012

NOTE:

Following is Chapter 1, OVERVIEW, of the Procard User Guide. There are five chapters in all. The link to the online User Guide is provided to all prospective cardholders at training. For additional details, please contact the Procard Manager in the Procurement Department at 545-1748. 


Procard Table of Contents

OVERVIEW

INTRODUCTION

Welcome to the University of Massachusetts Amherst - Procurement Credit Card Program (UMass Procard). The Procard is a procurement tool, which offers an alternative to the existing University procurement/payment processes and provides an efficient and effective method to purchase and pay for consumable commodities and some select services of low dollar value. The card is a MasterCard credit card, backed by Citibank, and hereinafter referred to as "Citi."

This User Guide outlines the benefits of the Procard program to you (the Cardholder) as well as to your department and the University. It also provides you with the information that you will need to use the card. The Procard concept is designed to delegate authority and responsibility, to enable you to quickly and conveniently make small purchases of approved commodities directly from those vendors that accept the MasterCard credit card. This program was created with the help of many staff and faculty members, who participated in the original Procard Pilot Program, and is designed to meet your needs and those of the University.

The Benefits of the UMass Procard to you and the University are significant:

Benefits to the Cardholder:

  • Eliminates the need for blanket orders for small purchases of consumable supplies and select services.
  • Allows you to obtain small purchases of consumable supplies and select services much faster and easier than with the traditional purchase/payment methods.
  • Allows you to be more efficient, thereby enabling you to better focus on the value added aspects of your job.
  • Eliminates the bottlenecks that exist within the paper system.
  • Eliminates the need for you to obtain vendor codes.

Benefits To The University:

  • Enables Procurement and Accounts Payable to focus on higher yield, more value added activities, such as the creation of more and improved contracts and the timely processing of invoices and payments.
  • Dramatically reduces the number of purchase orders, invoices, and checks.
  • Saves the costs associated with mailing purchase orders and payments.
  • Reduces the number of vendors in the University's Vendor File.

The Procard is designed to be used for purchases of consumable supplies and select services related to University business only. Use of the card for personal purchases is strictly prohibited. The Procurement Department and Accounts Payable are responsible for monitoring the effectiveness of the Procard Program. If you have any questions regarding the program or the appropriate use of the Procard, please contact the University Procard Manager in Procurement at 545-1748.
 

HOW IT WORKS:

The Procard simplifies the process for the purchase and payment of goods. Purchasing authority is delegated to the authorized Cardholder, thus enabling the Cardholder to order materials directly from the supplier. When the goods are received, the Cardholder saves the packing list (or whatever documentation is available from the vendor to show the proof of purchase (itemized). Once a month, the Cardholder will access their monthly statement from the bank online system. The Cardholder will reconcile the receipt documentation to the monthly statement and place it on file for audit purposes. It's that easy!
 

Procard Index

The Authorization Criteria: updated July 10, 2014

Authorization criteria is built into the Procard and is checked by the MasterCard system when the vendor scans the card, or enters the Cardholder's card number, at the point of sale. Following are the authorization criteria and the preset limits (Standards) that have been established by the University for Procard use. All transactions are approved or declined (instantaneously) at the point of sale based on the Procard authorization criteria:

The Account Administrator may increase or decrease on the Cardholder's card those standards that are noted above as being flexible. The Account Administrator may only decrease the single purchase limit (currently defaults to a maximum of $1,000 ) for an individual Cardholder. Each time a card is used, that counts as a transaction. If the transaction limits established for the card are exceeded, the card will reject. The Cardholder may make as many purchases as (s)he wishes from the same vendor in a single day, as long as the total of the combined purchases from that vendor does not exceed their single purchase limit. When the combined dollar amount of purchases from a single vendor in the same day exceed single purchase limit, that is called "dovetailing," which is a post audit issue.

Having discussed the standard limits, we want to make this card work for you. If you have an emergency supply order that cannot be purchased through the BuyWays eProcurement System, you can ask for a one-time exception to your single purchase limit. Email Holly Lankowski, Procard Manager and provide the vendor name, a list of what you plan to purchase with the unit and total costs including any shipping and handling. The person holding financial responsibility for the budget your card is attached to should be cc:d on this email. Once you send the email, follow-up with a call, if time is critical. If approved, the Procard Manager will temporarily increase your limit to allow the purchase to go through. Typically, you are allowed one week to process the charge before your limit reverts back to your normal dollar amount. A temporary increase can also be requested for your monthly limit. You are instructed to place the charge immediately and you must keep a copy of the email response with your Procard records to document the temporary allowance.

It is your responsibility to monitor your charges and be aware of the limits for your card. It is against Procard policy to split charges to get around your limit. This is called dovetailing and is prohibited on Procard. Instead, ask for an exception when needed.

Intentionally splitting an order whether using the Procard of one or more cardholders is considered dovetailing and prohibited. See Chapter 4, Post Audit/Oversight.

The Procard delivery materials will list the authorization limits assigned to your card. It is the Cardholder's responsibility to ensure that the limits assigned to his/her card are not exceeded and that there are sufficient funds in the card account to cover the purchase(s).

Instances occur when a cardholder’s limits need adjustment based on spending needs. Any permanent change to a card's limits need to be authorized by the person responsible for the card budget account (Account Administrator, Principle Investigator or Business Manager). This request can be forwarded to the Procard Manager via email or by using the Procard Application & Update Form. A copy of this request must be placed in the Cardholder's records file maintained by the department Procard Records Manager.

The authorization process occurs through an electronic system that supports the Procard processing services under the University's agreement with Citi. In addition, Procurement and Accounts Payable have the capability to view a large selection of daily reports to effectively monitor the use of Procards.
 

Procard Index

Speed Chart/Account Codes:

Use of the Procard is restricted to non-appropriated accounts. The Procard may not be used for purchases against state appropriated accounts. Only one speed chart number and account code may be applied to a Procard; however, Procard charges may be moved from the card speed chart/account code to other valid campus speed charts/account codes by one or more authorized individuals within the budgetary unit who have access to the Reallocation screens. See Chapter 5, The Procard Reallocation Program, for information and instructions regarding reallocation.

To better accommodate the varied needs of our Cardholders, account codes have been created specifically for Procard Use: 736699 against Subsidiary EE (Administrative Expenses), and 742992 against Subsidiary FF (Operating Expenses).

When you complete your Procard Application form, select the account code to go with the Speed Chart (budget). If expenses will always belong in a specific account code category, such as "Office Supplies-Administrative" (734200), that account code can also be specified. Select the account code that best fits the majority of the types of purchases of consumable supplies that you usually make that are appropriate for the speed chart assigned to your card, excluding those commodities that are on the restricted list (Restricted Commodities).

For example, if your supply purchases usually fall within Subsidiary EE , you would select account code 736699. Administrative departments would ordinarily select Sub. EE. If your supply purchases usually fall within Subsidiary FF, you would select account code 742992. Academic departments would ordinarily select Sub. FF.

Not all grant accounts are appropriate for Procard use. Check with the respective grant accountant in the Controller's Office for possible restrictions before you make a grant account a card account. If the card account is against a restricted grant account, only the account code can be reallocated, not the Speed Chart. You are encouraged to use other than a grant speed chart as the card speed chart, if that option is available to you. You could then reallocate the charges from the non-grant card speed chart and account code to one or more grant or non-grant speed charts and account codes, as may be appropriate.

Card Applications against grant speed charts must be approved by the appropriate grant accountant in the Controller's Office.
 

Procard Index

Restricted Commodities:

The Procard may be used for the purchase of most consumable commodities and with some select service vendors, with the exception of those contained in the list below. Cardholders will be informed of any changes to policy, as they may occur.

Purchases of restricted commodities, all purchases that may be inappropriate for the account assigned to your card, and any purchase that totals more than $1,000 (including shipping), must continue to be processed in accordance with other established procurement and accounting methods that are appropriate for the particular type of purchase. Please keep in mind that absolutely no personal purchases are allowed.

The Procard shall not be used to purchase the following commodities:

  • Alcoholic Beverages
  • Animals (Live)
  • Carpet that is to be Installed* (area rugs are OK)
  • Cash Advances of any type
  • Catering when food is set up/served/cleaned up by caterer. No eating in restaurants. Catering from UMass Auxiliary Services is allowed. 1
  • Cellular Phone Initial Set Up and Installation/Activation Charges - Subsequent Monthly Usage can be paid on Procard
  • Construction and Renovations*
  • Contract Agreements of any type that require a signature
  • Deposits of any kind
  • Entertainment Related Expenses* 1
  • Equipment unless an approved Equipment Waiver is held by the named Cardholder
  • Firearms of any type
  • Flowers, unless related to a campus event or function - Contact Procard Manager for Bereavement exceptions
  • Food, Beverages consumed at vendor's location 1
  • Furniture
  • Gasoline, Automotive
  • Gifts/Donations including Gift Certificates - Prizes are allowed but no gift certificates or gift cards
  • Insurance
  • Items that you have imprinted with the University Logo/Trademark unless purchased from a campus printing contract vendor
  • Leases and Lease-Purchases
  • Maintenance Service/Repairs*
  • Moving Services*
  • Over the counter medications - these items are restricted and not allowed
    to be purchased for department use or first aid kits
  • Personal purchases
  • Personal Purchases of any type
  • Phone Cards
  • Prescription drugs and controlled substances
  • Radioactive and Hazardous Materials
  • Reimbursements of any Type
  • Rentals of any Type
  • Services of any Type (Maintenance, Repairs, Contracts for Services, etc.)*
  • Telephone Cards
  • Time Payments of Any Type
  • Travel of Any Type (including conference or training registration, airline, hotel, etc.)

1Exception:  Takeout Food and non-alcoholic beverages.  Catering is allowed as long as vendor does no more than prepare/deliver the food.  The Expense Approval/Business Expense Form shall be completed if the purchase was for a staff event.  See Appendix 1, Accounting/Purchasing Policies, Use of the Expense Approval/Business Expense Form for Procard Purchases

*Some services are now allowed, please check to see if the vendor you are using is listed at the Services Allowed web page at http://www.umass.edu/procurement/Procard/services.htm.

If you have any questions regarding a restricted commodity, or if you have an emergency that requires immediate attention, please contact the University Procard Manager in Procurement at 545-1748.
 

Procard Index

CONTRACT COMPLIANCE:

While the Procard is a procurement tool, it does not change policy regarding compliance with the use of University contract suppliers. If the desired item is available on an established Campus, University, State, or MHEC contract, it must be purchased from the contract vendor.

The Procurement Department is authorized to bid for, and issue, contracts that will provide the University with "least total cost" arrangements for consumable supplies required from outside vendors. When bidding such contracts, Procurement considers not only the vendor's line item pricing for the products, but also the vendor's:

  • Ability to provide the necessary quality, delivery and service;
  • Overall pricing structure;
  • Warranty & service policies;
  • Compatibility with University automated systems;
  • Financial stability;
  • Other organizational requirements.

Supplier contract pricing and performance are normally based on the University's overall anticipated volume of purchases during the contract period. In order to assure the University community of paying the "least total cost" for goods, and to fulfill the University's obligation to consolidate all of its requirements with the authorized contract supplier(s), all University departments are obligated to order the required consumable supplies from those vendors who are authorized contract suppliers to the University (State, University and MHEC), if the desired items are available on contract.

The lists of current contract vendors may be found as follows:

University Contract Vendors: Found at http://www.umass.edu/procurement/commcont.html

MHEC Contract Vendors: MHEC Website at http://www.mhec.net/

State Contract Vendors: Commonwealth's Website at: https://www.ebidsourcing.com/displayPublicSearchAdvancedContCriteriaEdit.do?doValidateToken=false

NOTE: State and MHEC Contract expiration dates are staggered throughout the calendar year, so please check the websites first, to insure that the vendor is currently on contract.

Circumventing the use of contracts may realize some savings for you initially, but repeated circumvention of contracts dilutes their value, discourages vendors from bidding in the future, and eventually drives prices up, to where no discount is offered. This will eventually negate any savings that may be realized from the use of the Procard system. Keep in mind that many of the vendors who might offer you a lower price may have bid on, and lost, a Campus, MHEC, State, or University contract, and then intentionally try to circumvent contract pricing to gain your business. Please do not fall prey to this ploy. And, when you request pricing, make sure that you identify the appropriate contract against which the pricing should be applied. Failure to do so could result in your being given higher, non-contract pricing.

If the item is not covered by a contract, or, if the contract vendor is not yet ready to accept MasterCard, you may, of course, use any vendor that will accept MasterCard.

Departments may furnish to the Procurement Department the names and addresses of suggested vendors, together with the product types that they sell, for inclusion in future contract bids.
 

Procard Index

How to Activate Your Procard/Authorized User:

You must telephone Citi at the number indicated on the sticker on the face of your Procard to activate your credit card before you can use it. Citi will verify your identity, to ensure that you are indeed the legitimate Cardholder. Remember that only the named Cardholder is authorized to use a Procard. You are responsible for all activity against the card and may not share your Procard with anyone.
 

Procard Index

How To Order/Ship Goods:

The Procard may be used to purchase consumable supplies in person at the supplier site, over the phone, by web, fax or mail. Prior to placing the order, check the Contract Supplier Listings for contract suppliers for the product or service you are about to order. Again, remember that all Cardholders are obligated to order their required goods from those suppliers who are authorized contract suppliers to the University if the desired item(s) are available on contract.

When placing your order, please be sure to provide the vendor with the following information:

  • Identify yourself as a University of Massachusetts Amherst employee.
  • State that you wish to make a University purchase using a University of Massachusetts MasterCard.
  • State that the University is tax exempt and give the vendor the University's tax exempt number, which is listed on the front of the card (043-167-352).
  • Provide your name (Cardholder name).
  • Give your Procard Number (located on the front of the card).
  • Furnish the expiration date of your card.
  • State the appropriate contract that the purchase is being made against (Campus, University, State, or MHEC), if applicable, to insure that you will receive contract pricing.
  • State the quantities and descriptions of the consumable supplies that you require.
  • Furnish any other information that is necessary to make the purchase.
  • Verify the total cost of the purchase with the vendor and be sure that it falls under your card single purchase limit.

Note: Your Procard account address is the billing address.

Procard Index

Shipping Instructions:

Tell the vendor that the address label/packing list that accompanies the package(s) must contain the following information:

  • University of Massachusetts
  • Attn: PROCARD
  • Your Name, Dept., Bldg., Rm.
  • Campus Street Address
  • Amherst, MA 01003 – zip extension for your building location

For Information concerning the standard mail address format, link to the Mail Services Page.

Address labels/packing lists that do not contain this information will delay the delivery of your goods. Under no circumstances should the vendor indicate the Cardholder's Procard number on any labels that are external to the package, which would threaten the security of the card. See Chapter 2, Procard Records Management, for details on how to record and reconcile Cardholder transactions.

Please note that, by law, vendors are not permitted to bill your credit card for purchases until the items have been shipped and the transaction will not go against your card until that time. In most instances, your card account will be debited within 48 hours after the vendor ships your merchandise.
 

Procard Index

Responsibility for Receipt of Goods:

The Cardholder is responsible for ensuring receipt of goods and follow-up with the vendor to resolve any delivery problems, discrepancies or damaged goods.

Upon receipt of your goods, keep the documentation received from the vendor (typically a sales receipt or packing slip) for later reconciliation (see Chapter 2, Procard Records Management.)
 

Procard Index

Responsibility for Returning Item(s):

Item(s) should be returned directly to the vendor by whichever means the vendor requires. The Cardholder is responsible for ensuring that proper credit is applied to the card account for any returned item(s) and that evidence of the return is maintained. (If any issues exist in having a credit applied, contact the University Procard Manager at 545-1748 to initiate a dispute for the transaction.)
 

Procard Index

Fisher Chemical Stockroom Purchasing:

To insure authorization is current for Procard charges at the Fisher Chemistry Stockroom located in the LGRC, the following procedures must be followed:
1. Each academic year any Procard holder that wants to allow Grad Students and/or University staff to utilize their Procard for purchases in the Fisher Chemistry Stockroom to pick-up supplies for their area must complete a Chemistry Stockroom Registration Form.
2. The completed registration form is sent to the Fisher stockroom by the cardholder on or before the time the designated person requests supplies for the 1st time.
3. Fisher will utilize the Chemistry Stockroom Registration Form as required under this Policy and Procedure for the proper use of University Procards by Staff/Faculty/Grad Students in the Fisher Chemistry Stockroom.
4. No purchases will be allowed for anyone that is not on a current registration form. If Fisher allows purchases to an unauthorized person, the University will not be liable for the costs of the items.
5. Failure to abide by this policy will be considered a breach of Procard policy and reason to revoke the individuals Procard.

Procard Index

University Store:

The Procard may be used for departmental purchases of consumable supplies up to your card single purchase limit ($1,000 max) from the University Store. Purchases can be made over the phone or in person. All orders must be picked up. The Cardholder must be present when picking up a phone order or when making a purchase in person and must present his/her Procard to the sales clerk and sign for the purchase. Remember that the Procard is not to be used for personal purchases. Please remind the cashier/clerk that this purchase should be processed as tax exempt.

When calling in an order or making a purchase in person, please provide the sales clerk with the following information:

  • Identify yourself as a University of Massachusetts Amherst employee making a departmental purchase.
  • State your name, department name, and department address.
  • Provide your MasterCard Procard number and expiration date.
  • Indicate that the University is tax-exempt and furnish the tax-exempt number listed on the front of the card.
  • Give any other information necessary to make the purchase.

Failure to emphasize that you are making a departmental purchase may result in you not receiving the 30% University Contract discount on qualified items.
 

Procard Index

PROCARD RECORDS MANAGEMENT:

The following is a synopsis of the Procard policy for records management and is not intended to be all inclusive. For complete details, see Chapter 2, Procard Records Management.

The Procard will eliminate the time and effort spent on processing and invoicing small purchase requests/purchase orders. With the authority to purchase specific commodities comes the responsibility to maintain adequate documentation at the source of the transaction.

The Cardholder shall familiarize him/herself with Chapter 2, Procard Records Management, which details the procedures that the Cardholder must follow in order to maintain adequate documentation of all transactions against the Procard. Keep in mind that the documentation must support the legitimate business purpose of all transactions made with the Procard. Following are examples of supporting documentation:

  • itemized packing slips
  • itemized sales receipts
  • itemized copies of vendor order forms or applications
  • itemized cash register receipts

Each month that you (the Cardholder) have activity , you will receive an email alert from Citi advising that your statement is available. Log-into Citi and download/print your statement. Check this statement against your sales receipts and packing slips to ensure that all the goods for which you are charged have been received.

Upon completion of reconciliation of the Cardholder statement to the supporting documentation, the Cardholder shall forward the statement and all supporting documentation to the individual within his/her department who has been assigned the responsibility for records management. Such documentation shall be maintained on file in a manner that allows for its timely retrieval as detailed in Chapter 2, Procard Records Management, and as required by internal and external auditors, and by the Controller's Office. All documents must be retained by the department and kept readily available for audit purposes for the current and the previous fiscal year. All other records will be picked up by the Post Audit staff and put in storage in the Controller's Office for an additional eight-year period. Note: If you serve as your own Records Manager, or your Monthly Card Limit is greater than $5,000, then your supervisor needs to review and sign off on your statements each month.

The Cardholder statement that the Cardholder will receive each month is for reconciliation and audit purposes only. The University will pay Citi directly and charge the speed chart assigned to your Procard. Use of the Procard will in no way affect or change your personal credit history.

It is the Cardholder's responsibility to ensure that all the required documentation is accounted for and maintained in the manner outlined in Chapter 2, that the Cardholder statement is reconciled against the supporting documentation, that the Cardholder limits assigned to his/her card are not exceeded, and that (s)he does not exceed funds available in the account assigned to the card. Failure to do so will result in action being taken against the Cardholder's Procard, which may include a reduction in the Cardholder's authorization limits or the cancellation of the card.
 

Procard Index

How To Dispute A Transaction:

The Cardholder is responsible for following up with the vendor for any erroneous charges, disputed items or returns, within 15 days of review of the Citi Cardholder statement. A Cardholder may dispute a charge that appears on his/her monthly credit card statement. Disputed charges can result from failure to receive goods, use of the card by an individual other than the Cardholder to commit fraud, altered charges, defective merchandise, incorrect billing, duplicate charges, credits not processed, etc. The Cardholder should contact the vendor first to resolve any outstanding issues. Most issues can be resolved this way.

If the Cardholder is unable to reach agreement with the vendor, the next step is to contact the Campus Procard Manager at 545-1748 to initiate a formal dispute. (Exception: Sales tax will not be disputed and must be resolved by the Cardholder. Neither the bank nor the University will get involved with such disputes)

All disputed transactions must be submitted to the Procard Manager within 30 days of the monthly cycle date. Your request will be sent directly to Citi for review. When Citi has completed its investigation, the Cardholder will be informed of the resolution and any corrections that were made.
 

Procard Index

Credit Card Administration:
 

How to Acquire a Procard:

Only employees of the University (including student employees), as designated by the Account Administrator (the individual who has fiscal responsibility for the card speed chart) may receive a Procard. (See Chapter 3, The Procard Default Speed Chart and Lines of Authority). An individual may only receive his or her card after signing the Procard Card Application/Card Change form, which must be completed and signed by the applicant and the Account Administrator; by attending/completing a ProCard Training Session; and by signing the Cardholder Agreement Form.  

Note: If the prospective cardholder is also the Account Administrator, then the Procard application must also be signed by their Reporting Authority.

The Cardholder is required to be familiar with the Procard User Guide and adhere to all Procard policies and procedures. Prospective Cardholders must be present at Cardholder training and may not send a proxy.
 

Procard Index

Speed Chart/Account Code:

Each Card Application/Card Change form will bear a speed chart number and account code, against which all the Procard charges will be made. For a complete explanation of how the Default Speed Chart/Account Number works, see Chapter 3, The Procard Default Speed Chart/Account and Lines of Authority.

Note: If the prospective cardholder is also the Account Administrator, then the Procard application must also be signed by their Reporting Authority.
 

Procard Index

How to Cancel A Procard:

To cancel a Procard, the Cardholder must email the Procard Manager in the Procurement Department, who will give the Cardholder instructions as to what needs to be done, depending on the circumstances. (Exception: Cancellation if the card is lost or stolen. See How to Report a Lost or Stolen Procard, below).
 

Procard Index

Renewal of an Existing Procard:

A renewal Procard will be sent to the Procard Manager by Citi, 30 days prior to the expiration date of the card. The cardholder will be contacted for delivery dates/times.
 

How to Report A Lost or Stolen Procard:

It is the responsibility of the Cardholder to immediately report a lost or stolen Procard. The Cardholder must report a lost or stolen Procard by phone directly to Citi at 800-248-4553. The 800 number is staffed 24 hours a day, 7 days a week. A replacement card will be available for the Cardholder to pick up within 2-3 business days.
 

Procard Index

Procard Security:

Only authorized Cardholders may use the Procard. Cards and card numbers must be safeguarded by the Cardholder against use by unauthorized individuals within or outside the University.

Use of the Procard will not affect the Cardholder's personal credit in any way. The contract agreement that enables the University to authorize individuals to use the Procard is between the University and Citi/MasterCard. Unlike personal credit cards that limit liability to $50 for a lost or stolen card, the Cardholder's speed chart, not the Cardholder personally, is liable for all charges made to the Procard, up to the monthly transaction limit that is set on the card.

If a card is misplaced, lost or stolen, it is imperative to report this to Citi immediately (800-248-4553) to minimize any chance for fraud.
 

Procard Index

Consequences of Improper Use of the Procard:

The Procard represents the University's trust in you and your empowerment as a responsible employee of the University to safeguard and protect the University's assets. As a Cardholder, you assume the responsibility for the protection and proper use of the Procard.

See Chapter 4, Post Audit/Oversight, for an explanation of the post audit/oversight policies and procedures and how post audit and oversight of the card are administered.
 

Procard Index

Procard Audits:

To ensure the continued success of the Procard Program and to meet audit requirements of the University and various government agencies, periodic post audits will be made of the Cardholder's Procard account to determine that items purchased have been received, that proper records are being maintained, and that policies and procedures are being followed. The Controller's Office staff, as well as University internal and external, and state and federal auditors will perform these reviews. See Chapter 4, Post Audit/Oversight.
 

Procard Index

Tax Exemption (See Appendix 2, Massachusetts Sales Tax Policy):

The University of Massachusetts Amherst is exempt from paying Massachusetts State Sales Tax, and, in most instances, from paying the state sales tax of any other state. The tax-exempt number appears on the front of each Procard. This number must be given to all vendors by the Cardholder at the time of the transaction, to exempt payment of state sales tax.

If sales tax is billed incorrectly to the Cardholder's account, it is the responsibility of the Cardholder to dispute the charge with the vendor directly. Neither Citi/MasterCard nor the University will become involved with such disputes.

If a vendor requires a tax exemption certificate, it is the responsibility of the Cardholder to provide it. Cardholders may obtain a supply of tax exemption certificates from the Procurement Department or at http://www.umass.edu/procurement/FORMS/Form%20ST-5%206-2010.pdf.

Note: The University is Sales Tax Exempt but not Meals Tax Exempt. Meals Tax is charged when prepared food is purchased.
 

Procard Index

USE OF THE PROCARD:

Cardholder Responsibilities - Synopsis

Purpose:

To establish the policies related to the proper use of the University of Massachusetts - Amherst Procard.

Policy:

  1. All Cardholders must sign the Card Application/Card Change Form, which has been completed and approved by the Account Administrator (who also may be the Cardholder) and the Reporting Authority when the cardholder is also the Account Administrator.
  2. All Cardholders must attend/complete a mandatory training session.
  3. All Cardholders must sign and accept the terms and conditions of the University of Massachusetts Amherst Procard Cardholder Agreement Form.
  4. All purchase transactions processed against the Procard must be made by the individual to whom the card is issued. The Cardholder is responsible for all activity against the card and may not share his/her Procard with anyone.
  5. The Procard shall not be used for the following transactions. See Footnotes, pages 5-7, for the logic behind the exclusions.
    • Alcoholic Beverages
    • Animals (Live)
    • Carpet that is to be Installed* (area rugs are OK)
    • Cash Advances of any type
    • Catering when food is set up/served/cleaned up by caterer. No eating in restaurants. Catering from UMass Auxiliary Services is allowed. 1
    • Cellular Phone Initial Set Up and Installation/Activation Charges - Subsequent Monthly Usage can be paid on Procard
    • Construction and Renovations*
    • Contract Agreements of any type that require a signature
    • Deposits of any kind
    • Entertainment Related Expenses* 1
    • Equipment unless an approved Equipment Waiver is held by the named Cardholder
    • Firearms of any type
    • Flowers, unless related to a campus event or function - Contact Procard Manager for Bereavement exceptions
    • Food, Beverages consumed at vendor's location 1
    • Furniture
    • Gasoline, Automotive
    • Gifts/Donations including Gift Certificates - Prizes are allowed but no gift certificates or gift cards
    • Insurance
    • Items that you have imprinted with the University Logo/Trademark unless purchased from a campus printing contract vendor
    • Leases and Lease-Purchases
    • Maintenance Service/Repairs*
    • Moving Services*
    • Personal Purchases of any type
    • Phone Cards
    • Prescription drugs and controlled substances
    • Radioactive and Hazardous Materials
    • Reimbursements of any Type
    • Rentals of any Type
    • Services of any Type (Maintenance, Repairs, Contracts for Services, etc.)*
    • Telephone Cards
    • Time Payments of Any Type
    • Travel of Any Type (including conference or training registration, airline, hotel, etc.)

    1Exception:  Takeout Food and non-alcoholic beverages.  Catering is allowed as long as vendor does no more than prepare/deliver the food.  The Expense Approval/Business Expense Form shall be completed if the purchase was for a staff event.  See Appendix 1, Accounting/Purchasing Policies, Use of the Expense Approval/Business Expense Form for Procard Purchases.

    *Some services are now allowed, please check to see if the vendor you are using is listed at the Services Allowed web page at http://www.umass.edu/procurement/Procard/services.htm.

  6. No purchase transaction may exceed the $1,000 transaction limit (cost of goods, including all delivery, shipping and/or special handling charges). No more than $1,000 may be spent with the same vendor on the same day.
  7. Purchase transactions may not exceed the monthly transaction limits assigned to the card.
  8. Purchase transactions may not exceed the available budget in the Speed Chart/Account Code assigned to the card and must be appropriate for that Speed Chart/Account Code (See Speed Chart/Account Codes).
  9. Purchases must be for the use and benefit of the University. No personal purchases are allowed.
  10. It is the Cardholder's responsibility to ensure that adequate documentation is maintained for all transactions in accordance with the University records retention policy (see Chapter 2, Procard Records Management).
  11. It is the Cardholder's responsibility to cooperate with the Post Audit staff and to respond appropriately to any post audit findings. See Chapter 4, Post Audit/Oversight.
  12. It is the Cardholder's responsibility to safeguard the security of the Procard. Should the Procard be lost or stolen, it is the Cardholder's responsibility to report it immediately to Citi and the University Procard Manager (see Credit Card Administration).
  13. It is the Cardholder's responsibility as an agent of the University to ensure proper use of the University's tax exempt registration number (see Appendix 2, Mass. Sales Tax Policy).
  14. It is the Cardholder's responsibility to attempt to resolve any dispute (s)he might have with a vendor within fifteen (15) days of receipt of a disputed purchase. If a resolution is not possible, the Cardholder shall report the problem to the University Procard Manager within 50 days of the monthly cycle date, who will report the dispute to Citi (see How to Dispute a Transaction).
  15. Non-compliance with these policies will result in further action to be taken at the discretion of University Administration, the Associate Controller/Director of Procurement, or by the dean, director, account administrator, or the reporting authority, as may be appropriate, depending on the nature and severity of the issue of non-compliance, and in accordance with the University's Union and Human Resources policies. See Chapter 4, Post Audit/Oversight.
  16. Fraudulent use of the Procard will result in actions being taken in accordance with the procedures established in this User Guide and the Cardholder Agreement Form (see Appendix 3, Cardholder Forms.

Procard Index

 

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