ProCard Compliance Training Questionnaire

1. ProCard Compliance Training Questionnaire March 2010

2. ProCards are issued to individual University of Texas (UT) employees, not offices, departments, or cardholder groups. The cardholder has full responsibility for the allocability/allowability of transactions and verification of all transactions listed on the spreadsheet required by the ARL Vouchering Office. Transactions and VP7 documents shall be verified by an approving official. There is a personal liability with the use of the ProCard. Any cardholder making an unauthorized purchase will be personally liable for reimbursing The University or have their card privileges suspended. The use of a ProCard to pay for a purchase does not exempt UT employees from following State of Texas, federal, or UT purchasing requirements. See: http://www.utexas.edu/admin/purchasing/fhdbk.html

3. Cardholder Responsibilities It is important to notify the Purchasing Office if a cardholder terminates employment with The University or changes departments and must cancel his card. The procurement card should be cut into pieces and a notification to cancel the card sent to the Procurement Card Administrator prior to the employee's departure. The cancellation notification should list the cardholder's name and last 8 digits of the procurement card number. To report fraudulent use of a procurement card, contact the Procurement Card Administrator, then the ARL Business Office.

4. The following is a list of ProCard Disallowed Purchases:see http://www.utexas.edu/admin/purchasing/procard/pg_prohibit.htmlfor updates • Alcoholic beverages • Ammunition • Animals • Cash advances • Communication design services, including • Web site design and development • print collateral design • brand and logo development • copywriting • photography • videography • signage and wayfinding • advertising and other communication vehicles that represent the university, its colleges, schools, and units • Consulting services • Controlled substances • Cylinder gases • Entertainment • Flowers • Food • Gasoline • Hazardous chemicals • Leases • Liquid nitrogen • Online payment services such as PayPal • Personal items • Plants • Purchases involving the trade-in of university equipment • Radioactive materials • Travel • Tuition • TxTag toll road tags • University parking permits • Weapons

5. Allowability of Purchases When ProCard purchases are made under a contract or sponsored research agreement ( UT "26" account number), the cardholder has the additional responsibility to determine the following: Is the purchase allocable/allowable under the terms of the contract and are the items required in support of technical performance? For example: Telephones, office furniture/other equipment, or personal items such as prescription eye-ware must be justified as performance related; administrative /generic training courses are generally not allowed unless specifically identified in the contract.

6. Procurements for computers and technical devices must be performance specific and are normally part of a deliverable system. Unless the contract specifically requires the above items, they should be purchased from Lab Fee or PDC funds. Items such as computers and printers should not be purchased within 90 days of contract termination without justification. Purchases required for technical performance are allowable and justification should be provided to avoid the perception of spending down the contract which would make the expenditure an audit exception.

7. Vendor Tax Status For any purchase over $500, it is the responsibility of the cardholder to verify that the Vendor is in good standing with the State of Texas. This verification must be made by searching for the vendor's name and EID in either *DEFINE or POINTPLUS. *DEFINE will have an asterisk next to the vendor name on the GG4 & GG3 commands if the vendor is on hold. POINTPLUS will have "HOLD" next to the vendors name.

8. Confirming vendor Office of Foreign Assets Control Specially Designated Nationals List status For all purchases, the cardholder is responsible for verifying that a potential vendor does not appear on the list of Specially Designated Nationals (SDN) issued by the United States Treasury's Office of Foreign Assets Control (OFAC). Under Executive Order (EO) 13224 issued by the President of the United States, all government entities are prohibited from doing business of any kind with people, organizations, businesses, countries or other entities that appear on this list. This verification can be made by searching for the vendor's name on the SDN List: http://www.treas.gov/offices/enforcement/ofac/sdn/

9. Freight On Board (FOB): FOB signifies who is responsible for the item until received at ARL. Origin or Shipping Point signifies that the Vendor relinquishes title when it leaves their dock. It is the responsibility of the cardholder to negotiate any loss or damage with the freight carrier. Destination pricing signifies that the Vendor owns title to the item(s) until it is received by ARL. In case of loss or damage, the Vendor would be responsible for replacement of the item. Destination pricing should always be requested when soliciting a quotation.

10. Justifications Procurements for computers and technical devices must be performance specific and are normally part of a deliverable system. Unless the contract specifically requires the above items, they should be purchased from PDC or Fee funds. Preferably, computers and other general use items should be purchased through the Purchasing Office but in case of an emergency, a ProCard may be used as long as the ProCard holder provides the same justification required on the PR. All purchases using fee funds must have approval from either Patty Hamm or Lou Ann Marrs prior to the spreadsheet being submitted to the Vouchering Office.

11. Special Purchasing Considerations for use of ProCard versus Purchase Request Cell Phones (ARL:UT policy prohibits without Director approval) Equipment may be allowed, but the cell phone service is not allowable. Phone (equipment) should be charged to PDC or Fee accounts unless the cell phone is dedicated to the performance of a contract.

12. Special Purchasing Considerations for use of ProCard versus Purchase Request (continued) Machine Shop or other services should be weighed carefully since fabricated parts are sometimes voided by vendors. The cost of the service may be low but the cost of the material may be thousands of dollars. Printing: Article XVI of Texas Constitution requires that all printing jobs, regardless of the cost, be competitively bid. The only exception is printing processed through UT Printing or Duplicating. Bids must be kept with the voucher documentation.

13. Special Purchasing Considerations for use of ProCard versus Purchase Request (continued) Allocated Electronics Components: ProCard holders should evaluate whether electronic components which are highly allocated should be purchased by ProCard or by PO method. The latter allows the Purchasing Office the option of citing a government priority rating which is often used by Vendors to determine which customers have priority for delivery.

14. Special Purchasing Considerations for use of ProCard versus Purchase Request (continued) Books: The User is responsible for having all books and manuals purchased with a ProCard logged in by ARL library personnel and issued an accession number. Long Lead Items: Items with long lead delivery may not lend themselves to the ProCard method. The cardholder should determine whether the Vendor will issue charges at award or when the items are shipped since pending charges may decrease spending limits unnecessarily.

15. Special Purchasing Considerations for use of ProCard versus Purchase Request (continued) Office Supplies: Use of the ProCard for office supplies to non-Office Depot vendors is prohibited unless the items required are not available through UT's Office Depot contract (OD). The ProCard may be used in person at OD for items that are required immediately, and OD will apply the same discount as would be available on-line for ProCard holders. The cardholder must justify why an office product was not purchased at OD on the spreadsheet and will be personally liable for any inappropriate charges.

16. Billing - Monthly Administration: The cardholder must maintain an Excel spreadsheet of all transactions as well as a file of associated signed and dated receipts. The receipts should be signed by someone other than the cardholder that placed the order. The spreadsheet should contain the following: Purchase date, unique Cardholder ID#, vendor name, vendor EID, tax status, SDN status, item description, amount, contract charged, and budget category. For fabricated items (83 subaccount), provide the system name and requestor’s name. Justification is required on personal/general use items purchased on contract funds, printed circuit board purchases not done through Purchasing, or conference attendance paid on contract funds.

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