Procurement Cards

The Procurement Card is a VISA credit card, issued by US Bank/Élan Financial Services showing the name, University of Northern Iowa and the individual cardholder’s name. The Procurement Card is designed to provide a more efficient and cost-effective method for departments to purchase small dollar, commonly used items, specifically transactions less than $5,000. The monthly credit limit will be determined by the department, the Office of Business Operations, and US Bank, based on departmental need. The maximum credit limit allowed per card will be $5,000, unless special approval has been obtained from the Procurement Services Manager or their designee. The monthly credit cycle for the procurement card runs from the 26th of the month to the 25th of the following month. The spending limit resets at the beginning of each new cycle.

The card is a privilege granted to the individual by the University, it is the duty of each cardholder to ensure the responsible use of University funds. All purchases made using the Procurement Card fall under the same guidelines as all other University purchases such as with a purchase order or request for payment. The University will seek reimbursement, including through payroll deduct, for any inappropriate charges made to the card. Fraudulent or intentional misuse of the card will result in revocation of the card. Procurement card transactions are audited by the Accounts Payable staff within Business Operations, and monitored by Internal Audit.

Questions regarding the program should be directed to Mindy Schlader, 3-2212.

• Applying for a New Procurement Card

1. Login to protrav.uni.edu.

2. Click on the PCard tab in the navigation bar.

3. Navigate to the link titled Apply for a Procurement Card and provide required information.

4. Upon approval of the application, an email will be sent to the future cardholder with instructions for access to an online Procurement Card Program training course delivered through UNI eLearning. This course must be completed by the cardholder prior to picking up the Procurement Card.

5. The applicant will be contacted when their procurement card arrives to pick it up in person (bring photo ID).

6. Procurement Card Program re-certification is required of all cardholders by completing the Procurement Card Program training course every three years.

** NOTE: It is the discretion of the department to whom the procurement cards will be issued.

• Monthly Credit Limit or Single Transaction Limit - Increase or Decrease Request

Cardholders may need a higher monthly credit limit on their card due to more frequent use or large dollar purchases. The monthly credit limit cannot exceed $5,000 unless proper approval is obtained from the Procurement Services Manager or their designee. It must be identified as to whether the increase is a permanent or temporary request. For a permanent request a new application is required.

Permanent Change:

1. Locate the Pro-Card Limit Change Form on the Office of Business Operations (OBO) website.

2. Indicate "Permanent Limit Change" in the Type of Change field.

3. Fill in required information.

4. Submit the online form.

5. An email will be sent to the cardholder's Department Head or designee for approval.

6. Once necessary approval has been acquired, the Procurement Card Administrator will make the change and notify the cardholder when complete. Cardholder should allow for at least one work day for the change to take effect.

Temporary Change:

1. Locate the Pro-Card Limit Change Form on the Office of Business Operations (OBO) website.

2. Indicate “Temporary Limit Change” in the Type of Change field.

3. Fill in required information.

4. Submit the online form.

5. An email will be sent to the cardholder’s Department Head or designee for approval.

6. Once necessary approval has been acquired, the Procurement Card Administrator will make the change and notify the cardholder when complete. Cardholder should allow for at least one work day for the change to take effect.

• Cardholder Transferring to Another Department

Procurement cards are assigned to a department and cannot be transferred to another department. Employees should cancel their current card and submit a new application under their new department. This allows for the application to route for appropriate approvals and establish new credit limit requirements for the new department.

• Cancelation/Termination/Retirement

The Office of Business Operations needs to be notified immediately when a card needs to be canceled, the cardholder is retiring, transferring, or their employment has been terminated. Accounts Payable will immediately notify US Bank, thereby protecting the university through Visa's Liability Waiver Program. Failure to notify US Bank within two (2) days of learning of an employment status change voids this protection. The employing department is responsible for destroying and discarding the Purchasing Card once the cardholder leaves the university/department. Do NOT send an active Purchasing Card through campus mail.

1. Locate the Pro-Card Change Form on the Office of Business Operations (OBO) website.

2. Indicate “Cancel Card” in the Type of Change field.

3. Fill in required information.

4. Submit the online form.

5. A notification email will be sent to the cardholder’s Department Head or designee.

6. Accounts Payables will cancel the card.

7. Destroy and discard the Procurement Card.

• Change of Address for a Cardholder

Change of address information can be sent to protrav@uni.edu. The Procurement Card Administrator will update the address with US Bank.

• Card Plate & Card Number Safekeeping

The card is the property of The University of Northern Iowa. All cards, when not in use, should be stored in a secure location on campus. Cards should not be carried in the cardholder's purse or billfold on an ongoing basis because of the possibility of it being lost or mistakenly used in place of a personal credit card.

• Authorization

In some instances another staff member (secondary user), other than the cardholder, may need to use the Procurement Card. The cardholder must expressly approve the use of the card by the secondary user. No written documentation is required. The cardholder still remains responsible for all purchases made by the secondary user, including retention of receipts and documentation related to the purchase as agreed to in the University Procurement Card Application & Agreement.

• Internet Transactions

The Procurement Card may be used for purchasing items through the websites of established reputable companies. The Procurement Card may not be used for purchases from online auctions (i.e. E-bay, uBid.com, Overstock.com). There is no recourse for items purchased on these websites.

• Lost, Stolen, or Misplaced Cards

Should a card be lost or stolen, the cardholder or the cardholder’s department is responsible for notifying US Bank at 800-344-5696, UNI Accounts Payable at 319-273- 2162, and UNI Public Safety at 319-273-2712 in the event of local theft.

• Fraudulent or Unknown Charges

Should a cardholder notice an unauthorized charge on their procurement card statement, the cardholder must notify US Bank at 800-344-5696. The US Bank representative will advise the cardholder of the appropriate procedure to receive credit for the charge. The charge must still be entered on the Procurement Card reconciliation with an account number; the amount will be credited back to the account when the credit is received from the bank.

• Procurement Card List Serve

In order to communicate urgent or important information to cardholders in a timely manner, the Office of Business Operations requires all cardholders to be enrolled in the Procurement Card List Serve.

• Dollar Limitations

The Procurement Card single transaction limit will be $5,000, with departments having the option of setting their limit lower. The monthly credit limit will be determined by the cardholder’s department, Office of Business Operations-Procurement Services, and US Bank based on departmental need. The maximum monthly credit limit allowed per card per month will be $5,000, unless special approval has been obtained from the Procurement Services Manager, 3-2162 or their designee. Once the card has reached its monthly limit, it will be denied by a vendor. The monthly limit automatically resets per cycle. The cycle for the procurement card is the 26th of the month to the 25th of the following month.

• Purchase Incentives

In some instances University purchases may result in cash or cash-like value incentives. The cash and/or incentives are the property of the University and may not be used for personal gain. Examples of such incentives include, but are not limited to: rebates, gift cards, two-for-one purchases and spend rewards. The University recommends that cardholders not participate in these promotional offers. It's the responsibility of the cardholder to be assured that any monetary or cash incentive reward received as a result of a University of Northern Iowa purchase becomes the property of the University. If there is a cash purchase incentive, such as a rebate check attached to the purchase, every attempt should be made to receive the cash incentive as a credit to the Procurement Card. If credit to the card is not feasible, then deliver the currency or check to the cashier’s office. The funds should be deposited to the account which was originally charged. If a purchase incentive is received in the form of a gift card, retain the gift card within the department and use for future allowable purchases based on funding. Contact protrav@uni.edu if further clarification is needed.

• Procurement Card Returns

Any item that is returned must be returned for credit if possible. If credit to the card is not feasible, deliver the currency or check to the cashier’s office. The funds should be deposited to the account the expense was originally charged. If a purchase return is received in the form of a gift card, retain the gift card within the department and use for future allowable purchases based on funding. Contact protrav@uni.edu if further clarification is needed.

• Preferred Vendors

Cardholders are asked to make purchases from vendors with which The University of Northern Iowa holds a contract (preferred vendors). There are two cases in which the cardholder may use a non-contracted vendor: the item is unavailable from contracted vendors or if substantial savings can be found from another vendor other than preferred vendors. Cardholders may make the purchase from another vendor if they document the substantial savings. The savings should be documented and sent with the statement. If using non-contracted vendors, then make the purchase from the lowest priced vendor.

Exclusive Beverage Contract:

UNI must exclusively purchase its beverage products, from Coca-Cola. As an individual or department on campus, you may purchase from Coca-Cola directly, through UNI Catering, or the convenience stores on campus (Biscotti’s at the Redeker Center, 23rd Street Market at the Commons and Essentials at the Maucker Union), as their products are purchased directly from Coca-Cola. Purchasing from other providers is not allowed.

Office Supplies:

Located in the Physical Plant off Hudson Road, Campus Supply is the University’s Vendor of First Contact for office supplies. Before going out to the local retailer, check with Campus Supply first. Campus Supply works through a contract with Office Depot to keep prices at a minimum. All office items can be found on the Office Depot/Campus Supply website. Procurement Card use is required for purchases from the Office Depot website.

Travel Agencies:

The University has two preferred travel agencies. By booking through one of the two following agencies you receive all benefits available to University of Northern Iowa business travelers including discounted airfares, detailed reporting, enhanced security measures and time savings.

Humble Travel Service, Ltd.
http://www.humbletravel.com
125 Main Street Cedar Falls, IA 50613
Phone: 319-277-2202
Fax: 319-266-0974
Email: Arlene@humbletravel.com or johnny@humbletravel.com

Short's Travel Management
http://www.shortstravel.com/uni
1203 West Ridgeway Waterloo IA 50701
Phone: 319-433-0863
Phone: 888-625-0209 direct to UNI representative
Fax: 319-234-2490
Email: uni@shortstravel.com

Airlines:

American Airlines, Northwest Airlines and United Airlines offer discounted rates for University employees traveling on University business. These discounts can only be obtained by using the preferred University travel agencies listed above.

• Examples of Eligible Charges to the Procurement Card

The general rule is that each purchase with the Procurement Card must have a business purpose that benefits the public and the University. Document in detail the business purpose for the purchase for review. Failure to document the business purpose may result in further questions to the cardholder and delay in processing of the procurement card voucher.

1. Airline Tickets (Allowable travel expense, but should include an approved trip in ProTrav)

2. Conference Registrations – department must provide a copy of the registration form, traveler’s name, trip dates, and conference location (Allowable travel expense, but should include an approved trip in ProTrav)

3. Express Freight (Federal Express, Airborne Express, UPS etc.)

4. Laboratory supplies

5. Maintenance expenses

6. Office equipment

7. Office supplies – utilization of the University office supply contract

• Unauthorized Charges to the Procurement Card

1. Animals

2. Automotive parts or repairs – this pertains to both personal vehicles and vehicles owned and operated by Motor Pool

3. Controlled substances

4. Gasoline – unless approved by Motor Pool

5. Interdepartmental purchases

6. Personal items and personal expenses

7. Personal gifts to individual employees (i.e. flowers for a funeral unless foundation funding is available and approved in advance)

8. Purchases involving trade of University property

9. Radioactive materials and hazardous materials

10. Telephones and related equipment

11. Weapons and ammunition

• Sales Tax

Inform vendors that the University is sales tax exempt!!

Sales tax can frequently be avoided by providing or drawing attention to the tax certificate numbers affixed to the card.

The University of Northern Iowa, as a state educational institution, is exempt from paying state sales tax or local option sales tax on goods or services purchased in the state of Iowa. Payment of hotel/motel taxes is still required. The states listed in Appendix A also grant tax exempt status to the University for goods or services purchased while in their state. As indicated in Appendix A, a form or copy of a letter is usually required. These forms or letters may be obtained by contacting Julie Tyler at (319) 273-5885 or julie.tyler@uni.edu. If there are inadvertent sales tax charges on the Procurement Card, contact the supplier directly to seek a credit for the tax. The tax exempt certificate can also be downloaded from the Office of Business Operations website below:

Sales Tax Exemption

• Receipts and Other Supporting Documentation

Supporting documentation of each Procurement Card purchase must be submitted to the Office of Business Operations-Accounts Payable. As purchases are made throughout the month, the cardholder is responsible for retaining supporting documentation from each purchase. Supporting documentation includes any of the following:

1. Invoices

2. Detailed cash or sales receipt

3. Packing slips with dollar amount

4. Billing statements

5. Conference registration forms

6. Internet confirmations

All supporting documentation must include:

1. Supplier Name

2. Amount

3. Date

4. Itemized description of items purchased

5. Airline ticket documentation must include the ticket number

The Office of Business Operations monitors procurement card program activity. Accounts Payable staff review all procurement card transactions prior to processing procurement card vouchers. The general rule is that each Procurement Card purchase must have a business purpose that benefits the public and the University. Document in detail the business purpose for the purchase in order for review. In addition to the standard monthly review, Procurement Services staff perform an annual review assessing the credit limit levels of each cardholder. The result of this review may be a recommendation for a change in the credit limit of your card. If your credit limit will be affected, you will receive a notice from Procurement Services staff giving you the opportunity to justify your current credit limit.

Step 1:

Upon receiving the procurement card voucher, cardholders must reconcile receipts to amounts shown on the statement.

Step 2:

It is the responsibility of the cardholder to resolve discrepancies. If there are charges the cardholder wishes to dispute, it is the responsibility of the cardholder to first contact the supplier to seek resolution. If efforts to resolve the problem directly with the supplier fail, the item in dispute is charged to the department account and the cardholder should contact US Bank for procedures to initiate the dispute.

Step 3:

The Procurement Card Voucher must be completed and submitted along with all backup documentation in ProTrav by the 18th of the month.

Refer to the ProTrav Procurement Card Training Document on the Business Operations website for processing instructions. Cardholders must validate and distribute charges to the appropriate fund/account combination, attach all sup porting documentation, and submit the voucher to workflow for departmental and Business Operations approval. Vouchers should be received by Payables by the 18th of the month to be included in the current month’s accounting. All card charges and associated fees are the responsibility of the cardholder’s department.

Reminder Notice (18th of the month)

Cardholders/reconcilers who have not completed their procurement card voucher by the 18th of the month will receive an email from ProTrav. This email will remind them that their procurement card voucher were due today.

2nd Notice (Last business day of the month)

The cardholder/reconciler is notified via email that their procurement card voucher was either not received and/or was missing documentation. The email states the procurement card voucher and/or documentation needs to be in our office within one week.

3rd Notice (5th business day of the following month)

The cardholder/reconciler and supervisor are notified via email that their procurement card voucher was either not received and/or was missing documentation. The email states  the procurement card voucher and/or documentation needs to be in our office immediately or the procurement card limit may be reduced to $1, thus eliminating any further transactions.

4th Notice (10th business day of the following month)

If the procurement card voucher is not received and audited in our office, the cardholder/reconciler is notified via email that their procurement card limit has been reduced to $1.

The Office of Business Operations maintains all Procurement Card Vouchers within ProTrav. The University issues one payment each month to US Bank for the total Procurement Card charges. The University of Northern Iowa Internal Audit Department will periodically review and audit Procurement Card procedures and transactions of departments and colleges. The Internal Audit Department may review some Procurement Card transactions during departmental audits.

• Types of Violations

1. Unallowable purchases (detailed in Section IV)

2. Unacceptable documentation (acceptable documentation detailed in Section IV)

3. Late submission of procurement card voucher with supporting documentation (due 18th of each month)

4. Unresolved item disputes

5. Splitting charges to avoid the transaction limits (i.e. If the transaction limit is set at $1,000, then one $2,000 transaction cannot be split into two transactions to avoid the transaction limit)

6. Violation of Procurement Card Guidelines

• Disciplinary Action

All cardholders are subject to disciplinary action which may include revocation of the Procurement Card up to dismissal of employment. If the Procurement Card is used improperly, the University of Northern Iowa may deduct from the cardholder’s paycheck or from any other amounts payable to the cardholder, an amount equal to the total of the improper purchases. The University of Northern Iowa may also collect amounts owed to the cardholder after the cardholder is no longer employed by The University of Northern Iowa. If a situation such as this occurs, the cardholder is responsible for the legal fees incurred by the University in such proceedings.

Questions concerning Procurement Card procedures or related policies should be directed to Mindy Schlader, 3-2212.

Questions or concern regarding purchasing guidelines should be directed to Jon Westhoff, 3-6246.

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State	Documentation
Alaska	No sales tax.
Colorado	Need Iowa form showing vendor name.
Delaware	No sales tax.
District of Columbia	Need a copy of Letter of Exemption to vendor.
Florida	Need a copy of Consumer's Certificate of Exemption.
Hawaii	No sales tax.
Idaho	Need Iowa form showing vendor name.
Illinois	Need Iowa form showing vendor name.
Indiana	Need Iowa form showing vendor name.
Kansas	Need completed copy of School or Educational Institution Exemption Certificate.
Kentucky	Need completed copy of Kentucky Revenue Cabinet.
Maine	Need completed copy of Permanent Exemption Certificate.
Massachusetts	Need completed copy of Exemption Certificate to vendor.
Michigan	Need copy of Michigan Sales and Use Tax Certificate of Exemption.
Minnesota	Need a copy of Tax Exempt letter from Department of Revenue to vendor. The following items are taxable: food, drinks, rental cars and sleeping rooms
Missouri	Need copy of Exemption from Missouri Sales and Use Tax on Purchases.
Montana	No sales tax.
New Mexico	No sales tax.
North Dakota	Need copy of Certificate of Exempt Status-Exempt Organization at time of purchase.
Ohio	Need copy of tax exempt letter from Department of Taxation and Sales and Use Tax Unit Exemption Certificate.
Oklahoma	Need copy of Tax Exempt letter from the Oklahoma Tax Commission to vendor
Oregon	No sales tax.
Rhode Island	Need a copy of Certificate of Exemption to vendor.
South Dakota	No sales tax.
Texas	Need a copy of Tax Exempt letter from Comptroller of Public Accounts and Documentation to vendor.
Wisconsin	Need a copy of Certificate of Exempt Status to vendor.