HBP Part 7.8.2 Procard Responsibilities and Liabilities

Handbook of Business Procedures

Date published: September 7, 2018
Last revised: September 7, 2018
Issued by: Purchasing

7.8.2. PROCARD RESPONSIBILITIES AND LIABILITIES

Responsibility for the Procard is held by both the cardholder and the College, School or Unit (CSU) that the card is associated with. This section covers the responsibilities and liabilities of those groups and individuals.

A. CSUs

Procard use results in charges that must be paid immediately. Funds used to pay for these charges cannot be encumbered and must be made available immediately. It is important that Procard charges not exceed available balances on the accounts used for payment. A CSU’s cooperation is essential in this matter. Citibank must be paid promptly, (by the VP7 final approval deadline); therefore, the Office of Accounting and Financial Management will pay the bank from the chosen default account, unless otherwise indicated on the VP7 document.

All items purchased on the Procard belong to the originating funds and are the property of the CSU, grant, or other source of funding. No items purchased on the Procard are considered “personal property.”

It is not in the purview of the Procard Administrator to determine what funds can or should be used for specific purchases. Discussions about the funds to be used for specific Procard purchases should be held within the CSU prior to the purchase.

B. Cardholders

  1. Responsibilities

    Cardholder responsibilities are not limited to the information provided in this section. Cards are issued to individual employees and not to a CSU or to a cardholder group. The employee listed on the card has sole responsibility for the control and use of the card. The cardholder must take all necessary actions to ensure the card is maintained in a safe manner that follows all Procard guidelines outlined in this handbook. Access to the Procard should be carefully controlled and all charges on the Procard must be reconciled promptly to ensure all charges are legitimate. For questionable activity, loss, or theft of the Procard, refer to Part 7.8.7 Compromised Cards and Disputing Charges.

    After a purchase is complete, cardholders are responsible for verifying that transactions listed on their payment vouchers, (VP7s), are valid and that the amounts charged are accurate.

    If the cardholder is not able to verify a transaction, refer to Part 7.8.7 Compromised Cards and Disputing Charges for information about how to dispute charges.

    Cardholders are required to complete Procard Compliance (DE 0620) training on an annual basis. 

    Cardholders are required to turn in all receipts and supporting documentation no more than three days post purchase. All records must be retained by the cardholder for three years, plus the current fiscal year (four years total). All such documents must be imaged. Refer to Part 7.8.5 Post Purchase for information about record keeping and retention requirements.

    Cardholders are also responsible for making sure all supporting documentation is submitted on time and that their VP7’s are approved by the CSU prior to the VP7 Approval Deadline. Refer to Part 7.8.5 Post Purchase for information about reconciling requirements.

    Cardholders are responsible for ensuring that vendors are in good tax standing with The University of Texas at Austin as well as verifying that the university is not charged sales tax. Refer to Part 7.8.4 Making a Purchase for information about verifying a vendor’s taxpayer status.

    The Procard Administrator will review purchases monthly. The cardholder may be called to answer questions about purchases and supply records.

    All cardholders will sign an acknowledgment form when they receive their card, stating that they understand Procard policy and will adhere to it.

    When the cardholder no longer has use or needs their Procard, they will notify the Procard Administrator and follow the steps outlined in Part 7.8.8 Cancelling the Procard.

    Procard cardholders not abiding by University of Texas at Austin policies will have their card privileges suspended or cancelled.

  2. Liabilities

    The Procard is not associated with the cardholder’s personal credit line. In the case where charges are not fraudulent, but the cardholder allowed an unauthorized purchase, the cardholder will be held personally liable for reimbursing the university for the cost associated with the unauthorized purchase. Failure to do so will be seen as a violation of Procard policy and action will be taken against the cardholder.

    While cardholders may allow others to use their card, they are still solely responsible for any purchases made on their card. The university views any purchase made on the card as completed by the cardholder, except in the case of fraud. Any person allowed access to or use of the Procard should be a University of Texas at Austin employee.

    Improper use of the Procard may result in lawful action taken against the offending party. To ensure the proper use of the Procard, and security to the cardholder, cardholders should require that anyone who uses their card read all Procard policy provided in Part 7.8. Procurement Card (Procard) Program and keep a transaction log for use of their card.

  3. Card security

    Cardholders are responsible for making sure their cards are kept secure and must act as good stewards of the university.

    Card security best practices:

    • Do not make copies of the Procard.
    • Do not share your Global Card Management System (GCMS) login information. If any additional persons need access to your card, they can send a request to the Procard Administrator.
    • Do not share your bank verification information.
    • Delete any web browser cache after making an online purchase.
    • Do not save the Procard information to a vendor site or to any web browsers.
    • Do not fill out paper payment forms. If you must, request the information be destroyed after the purchase.
    • Keep a transaction log and make any person checking out the card sign the card in and out.
    • Always keep the card in a secure location.
    • Keep any written instruction or sensitive information related to the card in a separate secure location.
    • Change the chip PIN regularly.

 

 

Part 7. Purchasing - Table of Contents