Home : Financial : Purchasing

The University of Minnesota sponsors a procurement card program enabling authorized employees (on payroll) to make business-related purchases for goods and standard (not professional) services up to $2,499.99 on sponsored and non-sponsored accounts.

Purchases made through this program must comply with:

• University Purchasing policies and procedures.
• Special requirements of projects supported by sponsored funds.
• Cardholder department policies and procedures.

Cards may not be used for personal purchases, or loaned to another individual.

The procurement card provides University personnel with a cost-effective and convenient method of purchasing, thereby reducing the volume of individual payments processed by the University to vendors and employees.

Use of the Procurement card:

• Reduces the payment processing time and expense.
• Streamlines the purchasing process.
• Enhances the purchasing options available to departments.
• Provides an alternative to personal reimbursement.
• Provides consolidated reports for purchase and vendor negotiation.

• Applying for the Procurement Card
• Reconciling Procurement Card Activity
• Change Procurement Card Status
• Dispute Process

• Procurement Card Application
• Dispute/Resolution Form
• Lost/Stolen Form
• Statement in Lieu of Receipt

Subject	Contact	Phone	Fax/Email
Primary Contact	Jackie Orchard	612-624-1830	orcha002@umn.edu
Policy & Procedure Questions	Program Administrator	612-626-8673	612-624-4149
Card Application	Program Administrator	612-626-8673	612-624-4149
Provider Bank	Wells Fargo Bank	1-800-932-0036
Sales Tax Exemption	Tax Director	612-624-1053	612-624-4149
Other Purchasing Options	Purchasing Services	612-624-2828	612-626-0366
Financial System Inquiries	University Financial Helpline	612-624-1617	612-625-9841 fsshelp@umn.edu
Imaging/Document Retrieval	Admin Specialist	612-626-0290	612-624-4149
Hotel/Conference Room Rental	Real Estate Office	612-625-5345	muell418@umn.edu

Approver

Enterprise Financial System, (EFS) role
Individual assigned by department who is responsible for approving, or returning transaction statements. ensuring transactions charged are consistent with department and University policies and procedures, and determining the transactions propriety, accuracy and compliance.

Billing Cycle

The monthly period used by the bank to report and bill procurement card activity. Our current cycle, includes purchase transactions beginning on the twenty sixth day of the month, and ending with purchases made through the twenty fifth day of the following month.

Capital Equipment

An item with an acquisition cost of $2500 or more, that is moveable and has a useful life in excess of two years. Contact Inventory Services for details.

Certified Approver

A certified approver is a department or collegiate staff person who has been given authority by the Vice President for Research to review and approve financial transactions involving sponsored funds.

Contract Vendors

Vendors with whom the University has negotiated an advantage or discount rate.

Department Card Administrator (DCA)

A person who acts as coordinator for procurement card activity in their department. Typically will be designated by the Department Head or Area Manager.

Principal Investigator

The Principal Investigator is the primary individual in charge of a research grant, cooperative agreement, training or public service project, contract, or other sponsored project.

Program Administrator

An employee of Disbursement Services who has overall responsibility for the University's Procurement Card Program.

Provider Bank

The bank selected by the University to provide banking services required for the program.

Procurement Card

A University approved charge card used by employees to pay for authorized purchases.

Reconciler

Enterprise Financial System, (EFS) role.
Individual assigned by department who is responsible for reconciling procurement card transactions, notifying approver, and ensuring purchases are consistent with department and University policies and procedures. The cardholder may be the reconciler.

Reconciliation

Cardholder department review of procurement card activity to: ensure legitimate charges, assign appropriate chart field account distribution, add justification for each purchase to explain why and how the item will be used, process a dispute or contact a merchant directly regarding unidentified items, provide required signatures, and submit report with original receipts for imaging. Note: Full documentation must be included for hospitality expenses to include, business purpose, names of attendees and business relationships.

Sponsored Funds

Sponsored funds are granted to support a sponsored project. A sponsored project is defined as an externally funded activity that is governed by specific terms and conditions. Sponsored projects must be separately budgeted and accounted for subject to terms of the sponsoring organization. Sponsored projects may include grants, contracts, and cooperative agreements for research, training, and other public service activities.

Approver - EFS Role

Approvers are determined by cardholder department, based on delegation of authority. (A cardholder may NOT be their own approver).

• Review and take appropriate action on procurement card activity (Purchase Detail Report).
• Ensure documents are consistent with department and University policy and procedures
• Determine the transactions' propriety, accuracy, and compliance.
• Ensure transactions are distributed to the appropriate chart field account.
• Work with the reconciler to ensure the Purchase Detail Report for the entire billing cycle is printed and submitted with receipts to Disbursement Services for Imaging by the end of the month following the activity.

Cardholder

• Provide complete information on the procurement card application.
• Attend orientation session. (Orientation sessions are held every second and third Wednesday at 2:00 P.M. in Room 538 WBOB, 1300 S. 2nd St.
  http://policy.umn.edu/groups/ppd/documents/calendar/pcard_calendar_2007.pdf
• Activate and maintain the card in a secure manner.
• Know contract vendors and obtain contract rates.
• Ensure purchases are allowable according to University of Minnesota Financial Policy, department policies and procedures and if on sponsored funds, sponsoring agency guidelines.
• Obtain sales tax exemption.
• Obtain detailed receipt from merchant/vendor, retain and submit original with reconciliation.
• Provide separate signed statement for transactions with missing receipts using the Statement in Lieu of Receipt.
• Reconcile procurement card activity by providing receipts and justification to the reconciler in a timely manner.
• Take action to resolve disputed items (within 60 days of purchase date) or returns in a timely manner. Ensure the credit or resolution has occurred.
• Report immediately any lost or stolen cards to bank (1-800-932-0036) and Program Administrator.
• Return procurement card to DCA upon termination of employment or transfer to another department.

Certified Approver

• Review and take appropriate action on procurement card activity appearing on a sponsored account.
  http://www.research.umn.edu/spp/roles.asp (select Certified Approver)

Dean or Department Head or Designee

• Authorize University employees to use the procurement card.

Department Card Administrator (DCA)

• Develop department procedures regarding card program and provide assistance within department.
• Act as liaison between Program Administrator and cardholder.
• Notify Program Administrator in writing or e-mail of employee changes or lost or stolen cards.
• Maintain current knowledge of University of Minnesota Procurement Card Policies and Procedures.

Disbursement Services Imaging Department

• Image and archive Purchase Report and support documentation received from departments.
• Respond to document requests (copies) from departments.

Reconciler - EFS Role

• Reconcilers are assigned by the department based on the job function. (The cardholder may be the reconciler). Assign the appropriate chartfield and provide the description/justification for each transaction.
• Prepare Purchase Detail Report
• Ensure transactions are consistent with department and University policy and procedures.
• Notify approver of verified transactions to review.
• Work with the approver to ensure the Purchase Detail Report for the entire billing cycle is printed and submitted with receipts to Disbursement Services for Imaging by the end of the month following the activity.

Provider Bank / Card Company

• Produce procurement cards.
• Generate University billing.
• Replace lost/stolen cards.
• Monitor and follow up on activity for fraud.

Purchasing Services

• Identify opportunities to negotiate University discounts through vendor reports.

Resource Responsibility Center Manager TBD

• Provide oversight for program in cardholder unit.

Treasurer

• Negotiate and manage University-wide credit limit.

University Procurement Card Program Administrator

• Manage the procurement card program for the University of Minnesota.
• Act as program liaison between provider bank and University departments.
• Act as program liaison between Disbursement Services and the Office of Information Technology (OIT), Treasurer's Office, and Purchasing Services.
• Represent the program to University community and outside agencies.
• Have detailed knowledge about associated University of Minnesota Financial Policies.
• Promote procurement card program awareness and appropriate utilization.
• Develop and maintain University financial policy and procedures.
• Develop and maintain Disbursement Services procurement card policy and procedures.
• Provide orientation sessions and ensure cardholder attendance.
• Ensure monitoring and follow through of reconciled statements and support documentation.
• House the software that supports card program.
• Reconcile and submit monthly payment to provider bank.

• Appendix A - Examples of Allowable and Unallowable Card Purchases
• Appendix B - Blocked Vendor Types
• Appendix C - Calendar of Procurement Card Orientation Sessions
  
  • 2008
• Appendix D - EFS Procurement Card Processing Calendar
• Appendix E - Procurement Card Activity Reports ECAR (electronic) and CAR (paper) Processing Job Aid
• Appendix F - Information on Minnesota State Sales Tax
• Appendix H - Job Aid - Transaction Justification/Documentation Standards
• Appendix G - Procurement Card Rates -

  There is no cost for a card with our current provider bank (Wells Fargo).

  Service fees for charge card use are contrary to credit card regulations. If a charge appears for card use, contact the Program Administrator.

1. What can the card be used for? How do we prevent spending on items that are not allowable for a particular grant or agency?

   The card is best used for items such as books, conference registrations, hospitality, miscellaneous office supplies, airline charges and subscriptions. Purchasing is governed by cardholder department policies and procedures, University Policy, and where applicable, sponsoring agency regulations. For example, if a book is not allowable on a sponsored account now, it is not allowable when the Procurement Card is used. Additionally, types of vendors can be blocked. See also Examples of Allowable and Unallowable Purchases and Expense Allowability Chart.

2. What are the spending limits on the card?

   There is a University per purchase maximum of 2499.99 for sponsored accounts and non-sponsored accounts. The University monthly credit limit per card is $10,000. However, departments may choose a lesser amount for monthly and/or per transaction limits.

3. Is this a reimbursement program like the University's Master Card (personal liability) corporate travel card?

   No. The bill is received and paid centrally.

4. What guidelines do cards issued on sponsored accounts have to follow?

   Purchases on sponsored accounts must strictly adhere to all A-21, A-110 and any other appropriate agency guidelines. These guidelines may restrict the purchasing of specific items. It is the cardholder's responsibility to be aware of their own sponsor's rules and guidelines and make only appropriate purchases. Questions concerning the types of expenses allowed on sponsored accounts should be directed to the Principal Investigator or Certified Approver.

5. If a merchant asks for a "Bill to" or "Verification" address what do I give?

   Give the address that appears on the tri-fold sheet your procurement card came attached to. The address given to the merchant is verified with the bank. Entry of this information can be very sensitive, so it is important to pay attention to abbreviations and the order in which your address is provided (ex. Street address then room number and building name).

6. If a merchant wants a phone number for verification, whose number do I give them?

   Give them the Pcard Program Administrator's phone number: 612-626-8673.

7. When activating my card, I am asked to enter the last 4 digits of my unique identifier #. What number is this?

   Enter the last 4 digits of your employee ID number, which you provided on your application form.

• Administrative Policy: Purchasing Goods and Services
• Administrative Policy: Using the University Corporate Travel Card

Amended:

July 2008 - Updates made to address Enterprise Financial System rollout. Significant revisions in Definitions, Responsibilities, Procedures and Appendices. Title changed from Using the University Purchasing Card to Using the University Procurement Card. All references to Purchasing Card changed to Procurement Card.

Amended:

April 2007 - "Ensure the credit or resolution has occurred" added to cardholder responsibilities.

Amended:

April 2005 - Responsibilities section clarified to make it explicit that the Cardholder cannot also serve as approver or authorized signer, and that cardholder can also serve as preparer.

Amended:

September 2004 - In contacts section, the "Filming & Record Retention" changed to "Imaging/Document Retrieval" and phone number updated. Added additional material to FAQ.

Amended:

April 2004 - Purchasing Card procedures can now be found as a part of the Purchase & Pay for Goods & Services process within the Financial One Stop. Financial Onestop also added to related information.

Amended:

January 2004 - Added FFN Approvers Tutorial to Related Information

Amended:

October 2003 - Responsibilities section updated for Cardholder and Authorized Signer.

Amended:

June 2003 - Added new form - Statement in Lieu of Receipt.

Amended:

April 2003 - Transaction limit for both sponsored and non-sponsored accounts is now $2,499.99. Updated Certified Approver role and responsibilities.

Amended:

January 2003 - Procedures updated to use the Financial Onestop. Link in Related Information changed from ECAR Processing Calendar to ECAR/CAR Processing Calendar

Amended:

July 2002 - Updated new IX policy information. All purchasing card activity must be moved out of the default object code 7370 to appropriate object code by cardholder department. (Previously this was done by Disbursement Services). Language clarified in policy statement and reason. Updated definitions, responsibilites, FAQ, procedures and appendix B: Examples of possible card purchases.

Amended:

March 2002 - Added Appendix E: Purchasing Card Activity Reports ECAR (electronic) and CAR (paper) Processing Job Aid.

Amended:

September 2001 - Added link to ECAR Processing Calender in related information and appendices.

Amended:

July 2001 - Airfare can now be charged to purchasing card. Billing period changed. Clarified CAR and ECAR reconciliation procedures.

Amended:

July 2000 - Updated limit for nonsponsored purchases from $2000.00 to $2,499.00 per item.

Amended:

April 2000 - Policy amended to accommodate program enhancement, (on-line) Electronic Card Activity Report. Updated transaction limit on sponsored accounts to $999.

Amended:

May 1999 - Clarified FAQ section and updated Related Information.

Amended:

February 1999 - Updated Dispute/Resolution and Lost/Stolen card forms so they are interactive.

Amended:

January 1999 - Updated references to transaction limit in policy statement, definitions, FAQ, Procedure 3.7.2.2 and Online Purchasing Card Application/Update Form. The transaction limit was increased to $2,000 for non-sponsored funds.

Amended:

June 1997 - Updated phone numbers in Contacts section. Clarified Rates, Definitions, Responsibilities, and Frequently Asked Questions sections. Clarified all procedures. Updated Purchasing Card Application, Dispute/ Resolution, and Lost Card forms.

Amended:

February 1997

Effective:

March 1996

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.