Purchasing Department

Purchasing Card User's Manual

INTRODUCTION

Welcome to the University of Connecticut MasterCard Purchasing Card Program. The University Purchasing Card issued by, Bank One, is a credit card, which acts as a procurement tool offering an alternative to the existing University procurement processes. IT provides an extremely efficient and effective method of purchasing and paying for goods and services with a value less than $1,000. The Purchasing Card program is designed to delegate authority and capability to quickly and conveniently purchase approved commodities directly from the vendors that accept MasterCard. This program, co-sponsored by the Purchasing Department and Office of the Controller was created with the assistance of many staff and faculty members, and is designed to more efficiently meet your purchasing needs and those of the University.

The benefits of the procurement card to you and the University are significant and include:

Benefits to the Cardholder:

• Allows you to obtain goods much faster and easier than before.
• Significantly reduces workload related to the purchase of and payment for goods.
• Allows you to be more efficient and to focus on the value added aspects of your job.
• Significantly reduces clerical processing time and time associated with the approval process.
• Provides end users with greater autonomy.

Benefits to the University:

• Reduces the number of purchase orders, invoices and checks.
• Enables Purchasing and Accounts Payable to focus on higher yield, value added activities.
• Dramatically reduces the number of vendors in the University vendor database.
• Prompt payment to the vendor results in better prices and improved vendor relations.
• Significant reduction in the number of paper transactions.
• Purchasing Department will have more time to negotiate better contracts.

Benefits to the Department/Fiscal Manager:

• Only One (1) monthly statement will be received for verification and reconciliation.
• No need to prepare and obtain approval signatures on internal renewal forms.
• No purchase order is required, therefore no typing and tracking of individual purchase requisitions and receiving reports are required.
• No need to prepare BO-46 form for Co-op purchases.
• Monthly approvals required rather than individual purchase order and invoice approvals.
• Receive orders immediately or within days instead of weeks

The purchasing card is designed to be used for purchases related to University business only. Use of the card for personal purchases is strictly prohibited. The Purchasing and Accounts Payable departments are responsible for monitoring the effectiveness of the Purchasing Card Program and user compliance with the procedures outlined in this manual.

If you have any questions regarding the program, or the appropriate use of the purchasing card, please contact Nancy Patrylak, the University Purchasing Card Program Administrator at:

Purchasing Department
3 North Hillside Road Unit 6076
Storrs, Connecticut
Phone # 860-486-2622
Fax # 860-486-5051
E-Mail Address: Nancy.Patrylak@uconn.edu
OR
Cathy Radkovitch @ (860)486-5924
E-Mail Address: Cathy.Radkovitch@uconn.edu

HOW IT WORKS
The purchasing card simplifies the procurement and disbursement process by facilitating point-of-demand procurement. Purchasing authority is delegated to the ordering departments enabling the authorized Cardholders to place an orders directly with the suppliers.

The vendor validates purchases made with the Purchasing Card at the point-of-sale. The MasterCard system validates the transaction against pre-set limits established by the University which include:

• Number of transactions allowed per day - twenty (20)
• Number of transactions allowed per month - One Hundred (100)
• Single purchase limit not to exceed $1,000.
• Spending limit per month - Five Thousand Dollars ($5,000)
• Approved commodity code- (Merchant Commodity Codes (MCC) established by the bank and encoded into the magnetic strip on the reverse side of the card.)

*Exemptions to the above limitations may be granted on a case by case basis upon the approval of the Director of Procurement and Logistical Services or his/her designee.

The authorization process occurs through an electronic system that supports the purchasing card processing services under the University's agreement with Bank One. In addition, the Purchasing Card Administrator has the capability to view a large selection of daily reports to effectively monitor the use of purchasing cards. The Purchasing Department will also identify opportunities to further maximize the University's significant buying power through contract negotiations and contract administration.

Restricted Purchases:

Purchases of the restricted items listed below and purchases in excess of $1,000 or more must continue to be processed in accordance with established procurement and disbursement policies and procedures.

RESTRICTED PURCHASES
The purchasing card is not to be used for the following commodities:

• Alcoholic beverages
• Animals (live)
• Business, travel, and entertainment related expenses
• Cash advances of any type
• Cellular phones and related monthly charges
• Clothing, etc., (The imprinting of, with University Logo/Trademark(s))
• Computers of any value
• Construction and Renovation Services
• Contract Agreements of any type that involve a signature
• Equipment (value over $1,000)
• Food, Beverages consumed at vendor's location (Only take-out of food and non-alcoholic beverages are allowed)
• Furniture of any type
• Gasoline (except for State vehicles)
• Gifts/Donations
• Internet Service Providers
• Items prohibited from purchase under grant or research contract
• Leases & Lease-Purchases or any other time payment
• Moving Services
• Personal use items (IE attaches, Folios, Pen/Pencil Sets etc.)
• Precious metals
• Prescription drugs and controlled substances
• Printing Services
• Radioactive materials
• Reimbursements of any type
• Signage

*Exemptions to these restricted purchases may be granted on a case by case basis upon the approval of the Director of Procurement and Logistical Services or his/her designee.  If you have any questions regarding a restricted purchase please contact Nancy Patrylak, Purchasing Card Program Administrator @ 486-2622 or e-mail to Nancy.Patrylak@uconn.edu or Cathy Radkovitch@uconn.edu

APPROVED PURCHASES

The following are examples of the types of items that may be purchased with the card:

• Advertisements
• Animal feed and bedding (purchase of animals is prohibited)
• Books (items not available through Co-op) and periodicals
• Catering Services (where a signed contract is not required)
• Conference Registrations with Department Dean/ Director approval
• Dues and Professional Membership(s). ( Business, Technical, Professional and Institutional memberships only)
• Floor and Window Treatments
• Food (not for employee consumption. Grocery store purchases for student activities only)
• Gasoline (State vehicles only)
• Hardware supplies
• Internet Purchases for Approved Items Only (must be a secure site)*
• Insurance
• Maintenance Service/Repairs; Approved Vendors Only. See **note below.
• Office, Laboratory and Educational supplies (items not available through Central Stores)
• Postage (non metered mail up to $50.00 value)
• Rentals of any type
• Repair parts and materials
• Software and computer supplies
• Subscriptions (Departmental use only)
• Tools, fixtures and miscellaneous apparatus

*The risks of using the ProCard over the Internet are similar to the traditional risks involved when using it in person or over the telephone with one important exception. When Cardholders make a purchase over the Internet, the information exchanged between the Cardholder and the supplier may be transmitted through a network of possibly dozens of sites. For this reason, it is important to encrypt (scramble) the data exchanged so only the supplier can decrypt the information. To minimize your liability, it is important to ensure that the supplier is running a "secure" server for purchases so any information entered is likely to be meaningless to sites in between. If the supplier has a "secure" server, the Cardholder should be directed to this site prior to entering information including Purchasing Card number and expiration date. A dialog box informs the Cardholder they are switching to a "secure mode". In addition to the dialog box, the web browser should have a visual aid indication a secure/non-secure mode. In addition to a "secure" site, Purchasing recommends that if a purchase is made over the Internet, it be with a company you have used via traditional methods in the past. If you are uncomfortable giving your number over the Internet, some companies leave the option of placing your order on the Web and following up with a card number on the telephone.

**Refer to letter dated June 18, 2001, sent to all cardholders for username and password

CONTRACT COMPLIANCE

While the purchasing card is a procurement tool, it does not signal a change in policy regarding compliance with University contract suppliers.

The Purchasing Department is authorized to negotiate and issue contracts that will provide the University with "least total cost" arrangements for goods and services required from outside vendors. In negotiating those contracts, Purchasing will consider not only the vendor's line item pricing for the products or services, but will also consider the vendor's:

• Ability to provide the necessary quality, delivery and service
• Overall pricing structure
• Compatibility with University automated systems and standardization requirements
• Financial stability
• Warranty and Service Policies
• 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 "least total cost" of goods or services, 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 required goods or services from those suppliers who are authorized contract suppliers to the University. These vendors are listed on the Purchasing Department's home page under University Contracts. State Contract vendors can be found on the DAS Website. If you have any questions as to whether an item is on contract, any of the buying teams in Purchasing can help you.

Circumventing the use of these contracts may result in some initial savings but repeated circumvention reduces their value, discourages vendors from bidding in the future and eventually results in higher prices. Do not fall prey to a vendor that may offer you a lower price to obtain your initial business after failing to be awarded a University contract.

RESPONSIBILITIES OF USE

Responsibilities of the Cardholder:

• Completing a Purchasing Card Application Form and obtain approval signatures from reporting authority.
• Responsible for all purchases made with the card and for making such purchases in accordance with the procedures outlined in the User manual.
• Using the Card for University purchases and approved items only.
• Recording all purchases on the Purchasing Card Log and maintaining all supporting documentation (eg. Proper receipts, vendor order forms , cash receipts etc.)
• Only the cardholder is authorized to use the card or may designate up to two (2) secondary users. The cardholder remains responsible for all purchases made by authorized secondary users.
• Ensuring receipt of goods and following up with the vendor to resolve disputes and arranging for returns credits, delivery problems etc.
• Reporting lost or stolen card immediately. Safeguarding card security at all times.
• Responsible for repayment of improper charges and personal liability for misuse.
• Ensuring the reconciliation of the Purchasing Card Log to the bank statements and FRS on a monthly basis, unless this responsibility has been delegated to the Record Manager.
• (Note: The reconciliation process shall be completed within ten (10) business days from receipt of bank statement. The combined process of reconciliation and re-allocation shall not exceed 15 business days from receipt of statement.)

Responsibilities of the Record Manager:

• Completing a Record Manager Designation Form and attending the mandatory training session with the Cardholder.
• Reconciling the Purchasing Card Log to the bank statement and FRS on a monthly basis, if delegated this authority by Cardholder.
• Assisting Cardholder in verifying and resolving returns, credits, and discrepancies, as needed.
• Maintaining the Purchasing Card Log with reporting documentation in a secure location at all times (locked cabinet is preferred).
• Collecting and maintaining receipts from Cardholder(s) ensuring timely retrieval for auditing purposes.
• Completing the re-allocation process to input proper accounts/subcodes for each transaction within five (5) business days from receipt of the reconciled Purchasing Card Log and bank statement from Cardholder (not to exceed 15 business days for the combined reconciliation and re-allocation process).
• Assisting Cardholder in resolution of problems or questions about purchases, as needed.
• Retaining documentation at specified location, in compliance with State, University or grant guidelines for record retention (minimum of three (3) years).

Responsibilities of Reporting Authority*:

* Reporting Authority is defined as that individual who has oversight responsibility for purchases and for administering the departments budget.

• Designating one (1) individual in the department to act in the capacity of the Record Manager.
• Identifying potential Cardholders.
• Approving all Purchasing Card Application Forms.
• Overseeing Purchasing Card program for their respective Department.

HOW TO USE YOUR CARD

Ordering Process:
The Purchasing Card may be used to purchase approved goods and services in person (at the point of sale), over the phone, by mail or over the Internet. Please remember when using your card over the Internet, to be sure that you are using a secure site. Prior to placing the order, check the University and State Contract Supplier Listing for the applicable contract suppliers for the product or service you are about to order. All Cardholders are obligated to order required goods and services from those suppliers who are authorized contract suppliers to the University.

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

• Identify yourself as a University of Connecticut employee.
• State that you are making the purchase using a MasterCard Purchasing Card.
• State that it is a tax-exempt purchase and provide number listed on reverse side of the card. State Cardholder name.
• Provide individual charge card number and expiration date on charge card.
• Provide complete delivery address including building and room number.
• State the appropriate University or State contract that you are using to insure that you receive correct pricing and applicable prompt payment discounts.
• State the quantity and description of the items being ordered.
• Verify the total cost of the Purchase with the vendor.
• Furnish any other information that may be required.

Note: Please inform the vendor not to send a bill or invoice to the ordering department or Accounts Payable. Submitting an invoice for a charge card transaction may result in a duplicate payment.

Shipping Instructions:

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

Cardholders Name
Department Name
Building and Room Number
Street Address, Unit Number
Storrs, CT 06069

Packages that are not labeled as above described may delay the delivery of items ordered indefinitely. Under no circumstance should the vendor indicate the Purchasing Card number on any address label or packing list. Listing of same would threaten the security of your card.

Upon receipt of your order, keep the documentation received from the vendor (typically a sales receipt, cash register receipt, or packing slip) for later reconciliation (refer to Record Keeping). Each month you will receive a Cardholder statement listing all of your purchases. Check this statement against your sales receipts and packing slips to ensure that you have received all the goods for which you have been charged.

Upon reconciliation, forward the statements and all supporting documentation to the individual within your department, school or center who has been assigned responsibility for document retention (Record Manager).

University Bookstore-Co-op:

The Purchasing Card may be used for departmental purchases from the University Bookstore/Co-op. A BO-46 is not required. The Purchasing Card cannot be used for personal purchases of any type from the Bookstore/Co-op or for any other restricted purchases identified in this user manual.

Proof of Purchase Documentation:

With the authority to purchase comes the responsibility for maintaining adequate documentation at the source of the transaction. It is the responsibility of each department to develop a process and assign responsibility for document retention in accordance with the requirements set forth in this manual.

Each month you will receive a Cardholder statement listing all of your purchases. Check this statement against your sales receipts and packing slips to ensure that you have received all the goods for which you have been charged. Adequate documentation must be maintained to record the transaction at the source. Documentation must support the legitimate business purpose of all transactions made with the Purchasing Card. The following are examples of supporting documentation:

• Copies of order forms or applications;
• Internal order form if applicable;
• Cash register receipts;
• Sales receipts; and/or
• Vendor order number if any, for telephone orders.

Upon verification, forward the statement, and all supporting, documentation to the individual within your department school or center who has been assigned responsibility for reconciliation and document retention (Record Manager).

The Cardholder statement you receive is for your information and audit purposes only. The University will pay Bank One directly. Use of the Purchasing Card will in no way affect or change your personal credit history.

Disputing a Transaction:

The Cardholder is responsible for following up with a vendor regarding any erroneous charges, disputed items or returns within fifteen (15) business days from receipt of the bank statement. A Cardholder may dispute a charge that appears on their monthly charge card statement. Disputed charges can result from failure to receive goods, fraud or misuse, altered charges, defective merchandise, incorrect amounts, 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 complete a "Statement of Questioned Item" form and send it along with any supporting documentation to the following address:

Purchasing Card Program Administrator
Nancy Patrylak, Purchasing Department
3 North Hillside Road Unit 6076
Storrs, Connecticut 06269

All disputed transactions must be submitted to the Purchasing Card Administrator within fifty- (50) days of the monthly cycle date. Your request will be sent directly to Bank One for review. When Bank One has completed its investigation, the Cardholder will be informed of the resolution and any corrections that were made.

Please note that, by law, vendors are not permitted to bill your credit card for purchases until the items have been shipped.

Receipt of Goods/Returning Item(s):

Receipt of Goods and Services:

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

Returning Item(s):

Item(s) should be returned directly to the vendor by whichever means the vendor requires. The Cardholder is responsible to see that the proper charge is posted for any returned item(s). (refer to Disputing a Transaction).

Using the Purchasing Card for Grant Purchases :

The Purchasing Card may be utilized for grant purchases, however, the use of card for a grant or contract requires some forethought since the purchasing authority has been transferred to you through issuance of the card. Careful judgment must be exercised before you make a purchase with the card against grants. You must clearly understand what constitutes an allowable charge to your particular program. You should be aware, for example, that supplies on grants must be "lab" and not office supplies. If you have questions in this area the staff in the Office of Sponsored Programs remains available to assist you.

Grant Purchases Checklist:

• Grant purchases are permitted provided that the item purchased is an allowable charge against the grant;
• The Purchasing Card can not be used for charging departmental costs to a grant account;
• Grant purchases must be made in accordance with the restrictions terms and conditions of the grant;
• The grant account cannot be used as a clearing account for card purchases;
• FRS account and subcode assigned to the purchase must be appropriate;
• When placing an order against a grant account, the "received date" must be within the terms of the grant or contract;
• Card purchases can be charged to a grant account through the re-allocation process only. If an incorrect account or subcode is used, correction shall be required and accomplished through a subsequent cost transfer;
• Submit Purchasing Card Log with supporting documentation to Record Manager within prescribed deadlines;
• A direct benefit must be shown for all card purchases made against a grant account;
• Any questions should be directed to the Office of Grants and Contracts.

Where can you use the card?:

The card can be utilized at virtually any location that accepts the MasterCard. You should use University and State Contracts whenever possible as they offer the most competitive pricing and favorable terms to the University. A list of University Contract vendors are listed on the Purchasing Department's Home Page or State Contracted Vendors on DAS Website.

PURCHASING CARD ADMINISTRATION

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Acquiring a Purchasing Card:

Only regular full or part time employees of the University, designated by the Department Reporting Authority, will be permitted to receive a Purchasing Card. An individual may only receive his or her card after the following:

• Completing an Application Form & Record Manager Form
• Attending a Mandatory Purchasing Card Training Session
• Signing a Cardholder Agreement Form

The Cardholder is required to read the Purchasing Card User Guide and must adhere to all Purchasing Card policies and procedures outlined therein. Prospective Cardholders and record managers must be present at the mandatory training session. Failure to attend this training session will prevent receipt of the card.

Canceling Purchasing Cards:

To cancel a Purchasing Card, the card must be cut in half and sent to the Purchasing Card Program Administrator, Nancy Patrylak along with a written request for cancellation. All Cardholders are responsible to notify Purchasing to cancel their card prior to leaving the University or accepting a position in a new department.

Renewal of Existing Purchasing Cards:

A New Purchasing Card will automatically be sent to the Procard Administrator at least thirty (30) days in advance of your current card's expiration date. Renewed cards will be distributed by the ProCard Administrator.

Lost or Stolen Purchasing Cards:

It is the responsibility of the Cardholder to report a lost or stolen Purchasing Card immediately. Notification must be made by phone directly to Bank One @ (800) 848-2813 and to Nancy Patrylak, the Purchasing Card Program Administrator at (860) 486-2622 at the time of the occurrence. Verbal reports of lost or stolen Purchasing Cards must be followed in writing utilizing the "Lost or Stolen Procurement Card Notification Form" as soon as possible.

Purchasing Card Security:

Only authorized Cardholders may use the Purchasing Card or up to the maximum of two (2) individuals within the department that have been granted secondary use authorization by the Cardholder. In granting this secondary authorization it should be noted that the Cardholder remains directly responsible for the proper use of the card in accordance with established procedures. Cards and card numbers must be safeguarded by the Cardholder against use by unauthorized individuals within or outside the University.

Misusing the Purchasing Card:

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

The following situations are examples of misuse of the Purchasing Card:

• Use of card for personal purchases;
• Use of card by individual other than Cardholder or authorized secondary user;
• Use of the card to purchase a restricted item as identified in the user guide;
• Use of the card in direct violation of acquisition goals (failure to use existing University or State contracts);
• Use of the card in excess of assigned Cardholder limits, available budget and/or after the expiration date of a grant or contract;
• Splitting orders at point of sale to avoid the single transaction limit;
• Re-allocation of non grant expenditure to grant account;
• Receipt of item outside of grant period;
• Inappropriate re-allocation; and/or
• Failure to re-allocate charges within the period specified for re-allocation.

Misuse of the Purchasing Card will be handled promptly and uniformly for all Cardholders. Refer to the Post Audit section of this manual for how consequences of misuse will be handled.

Record Keeping:

Purchasing Card transactions. A Purchasing Card Log has been developed to assist you in the recording and filing of this documention. Preprinted Purchasing Card Log envelopes will be distributed for recording transactions as they occur. You can get additional envelopes from Central Stores. The stock number is 7377.0020. The information contained on this log must be reconciled to your monthly bank account statement. Additionally, this envelope should be used to retain supporting documentation.

The following information must be recorded on your Purchasing Card Log on a monthly basis:

• Card Information:
  • Name of Cardholder
  • Record Manager
  • Department Name
• Closing Statement Date: ***This date MUST be the 23rd of the statement month (e.g. 9/23/00).
• FRS Account: The FRS account number assigned to your Purchasing Card; A method will be available to re-allocate expenses to other FRS accounts and/or subcodes;
• Purchasing Card Number; Transaction Date: The date you placed the order;
• Vendor Name: The vendor with whom the order was placed;
• Items Purchased: Include general description of the item(s) purchased, e.g., office, lab, educational and maintenance supplies, tools, software, and subscriptions;
• Total Price: Include the total cost of the order;
• How item was ordered:
  • P = Phone
  • M = Mail
  • I = In Person
• Vendor Order # : Many vendors will assign an order or confirmation number to your purchase (usually phone orders). If an order # is assigned, please make a note of it here. For telephone orders, please note the full name of individual providing quote in this block.
• Re-allocation: The 10 digit FRS account where the expenditure is to be transferred. The charge does not belong to the account associated with your card but is to be redirected to the FRS account # entered here.
• Date Received: The date the order was received.
• Partial / Final: Note if shipment was partial or complete and if all items were received?
  • P = Partial
  • F = Final
• Bank Statement: This must be completed. Indicate with a check mark if item reconciles with the bank statement. Use the comment area on the record keeping envelope to address un-reconciled items.
• Un-reconciled items: Might include items not yet received, damaged or return goods and/or unusual circumstances.

To obtain an electronic Excel version of the Reallocation Log Sheet, e-mail Nancy Patrylak at Nancy.Patrylak@uconn.edu. You can also download the Excel file of the Log Sheet, but you must be using Internet Explorer. Once you have opened the file in your browser, export it to Excel by clicking the Excel icon on the menu at the top of the sheet. When the file opens in Excel, it will be 'read only', so you must save it with another name before you can begin working. Download the PDF file Instructions for using the Log Sheet.

*** IMPORTANT THINGS TO REMEMBER ***

"        Supporting Documention: Every care should be exercised in maintaining receipts/invoices. Copies of invoices are available from the bank at the cost of $5.00 per each copy which can become very expensive.

"        Please remember that the University is a tax exempt institution and purchases should not include any state sales tax. If tax was charged, you should get a credit from the vendor.

"        Uniform Commercial Code: If you wish to be afforded the protection of the Uniform Commercial Code (UCC), it is recommended that you obtain a written quote from the vendor for single item purchases in excess of $500.00. The UCC affords the buyer certain rights and remedies in the event of a dispute.

Purchasing Card Audits::

To ensure the continued success of the Purchasing Card Program and to meet the audit requirements of the University, various government agencies, and the requirements of this program, periodic audits will be made of Cardholders accounts to ensure that items purchased have been received and that policies and procedures are being followed.

Audits will be completed in accordance with the following guidelines:

"        Periodic audits will be completed on site for each cardholder;

"        Post audit teams consisting of one (1) representative from Accounts Payable and one (1) from Purchasing will be assigned in rotation to complete a written audit report with findings for each Cardholder account;

"        Audit reports will be completed utilizing a post audit checklist to record any infractions against the categories of misuse outlined herein;

"        Audits will be completed on each account as time permits subject to the quantity of cards issued;

"        Audits will be completed more frequently on those accounts where infractions were previously identified;

"        Random audits may be scheduled at any time in addition to the regularly scheduled audit rotation.

Audits will be conducted for the purpose of confirming compliance to established procedures for card use and to report areas of card misuse to the Post Audit Committee for further action.  Consequences of misuse will include any one (1) or combination of the following remedial actions:

"        Verbal notification of infraction;

"        Written notification with copies sent to Purchasing Card Program Administrator and reporting authority;

"        Temporary suspension of Cardholder privileges with mandatory re-training (Suspensions will be assessed for a period of minimum of thirty (30) days or up to ninety (90) days depending on the severity of the infraction);

"        Card suspension with permanent loss of privileges;

"        Disciplinary action up to and including dismissal, personal liability and repayment (referred to Human Relations Department for disposition).

Reporting requirements may include any one or combination of the following options subject to the determination of the Purchasing Card Program Administrator and Post Audit Committee.

"        Formal written warnings will be sent to the individual Cardholder from the University Purchasing Card Program Administrator with copies to the Cardholder's immediate supervisor, Dean/ Director, or Department Head.

"        The Director of Purchasing and the Controller will be copied on the notification based upon the severity of the infraction. The notification will include a warning for Purchasing Card revocation pending further investigation and/or misuse.

The Post-Audit Committee will also be available to provide training and technical support to Cardholders, as needed.

Sales Tax Exemption:

The University of Connecticut is a tax-exempt organization. The tax-exempt number appears on the back of each Purchasing Card. This number must be given to all vendors by the Cardholder at the time of the transaction to exempt payment of state sales tax. In addition, all cardholders will receive a tax exempt certificate for Purchasing Card Use Only.

If sales tax is billed incorrectly to the Cardholder's account, it is the responsibility of the Cardholder to dispute the charge as outlined in the section "Disputing a Transaction".

Re-allocation Process:

Getting the Purchasing Card Charges into the Accounting System:

"        The bank will provide charge information daily.

"        These charges will be made directly to the account that was specified on the application, and will affect the budget available in that account.

"        The charges will be made against a clearing subcode, so that they will be easily picked out as purchasing card charges.

Moving the Charges to the Appropriate Accounts:

"        Re-allocation Re-allocation will be made in an FRS screen, based on the monthly statement and the Purchasing Card Log.

"        The purchasing card charges must be transferred out of the clearing subcode to the exact (non-clearing) expenditure subcodes or to separate accounts and subcodes.

"        Only appropriate charges should be transferred to Grant accounts.

"        The re-allocation procedure will be used to record the receipt date for items purchased for Grant accounts.

"        Training in this procedure will be provided to Record Managers and Cardholders.

"        Re-allocation must be done within five (5) business days from receipt of the reconciled Purchasing Card Log and bank statement from the Cardholder. The combined process of reconciliation and re-allocation shall take no more than 15 business days from receipt of bank statement by the Cardholder.

"        Flexibility at purchase time requires some extra time on the record-keeping end.