1. The University of Texas Medical Branch Procurement Card Program March 1st, 2015 Procurement Card Program Administrator: John Hall Ext. 23592

2. Procurement Card Guidelines b Used to purchase NON-Restricted goods & services for official UTMB business within a Cardholder’s pre- established limit b All purchases are exempt from State of Texas sales taxes b Transactions may not be split to divide large purchases which are over the cardholder’s limit

3. Compliance Guidelines The Procurement Card Program: b Will be administered and monitored for compliance with all applicable federal, state, and local laws b Is NOT intended to supercede or bypass any compliance with U.T. or U.T.M.B. rules or regulations b Must comply with the UTMB HUB Program Guidelines and Goals

4. Not For Purchase Orders Payments! b Procurement Card Payments must only be non-purchase order transactions b If a UTMB purchase order has been issued to the vendor, the payment must not be made with the Procurement Card  Why? The encumbrance created by the purchase order will not be liquidated and funds will not be released back to the department budget balance b Possible Duplication of Payment

5. Simplified Procurement Card Purchasing b Cardholder makes authorized purchases from approved venders. b Cardholder logs Purchase in Transaction Log b Goods are shipped by supplier and received by Cardholder b Cardholder attaches receipts and other supporting documentation to Transaction Log b Department Coordinator reconciles monthly statements with Transaction Logs for accuracy b Department Coordinator retains all documentation according to UTMB Records Retention Schedule

6. Procurement Card Payments b Citi Bank pays merchants in 24 to 48 hours b Citi Bank provides detailed statements for UTMB Cardholders to the Procurement Card Program Administrator for distribution to Department Coordinators b Detailed statements for each card will be distributed monthly to the Department Coordinators for reconciliation b Employees do not pay their own monthly statements The program does not affect your credit rating in any wayThe program does not affect your credit rating in any way

7. Charge Allocation b Each Procurement Card has an assigned default funding source. b All charges will post to the default fund source PeopleSoft CFS unless the Dept. Coordinator re-allocates the charge to another approved fund source. b A federal fund source or a project may not be used as a Primary fund source, unless a Secondary Fund Source is provided as well

8. Dispute Resolution The Cardholder is responsible for resolving all disputed charges b First, Cardholder contacts the vendor to see if dispute can be resolved with the vendor b If the dispute cannot be resolved, the Cardholder must complete a “Statement of Disputed Items” form and send it to Citi Bank ASAP. b Failure to take immediate and appropriate action violates the Cardholder’s delegated fiduciary responsibility to safeguard UTMB assets and could result in a loss to UTMB and Card cancellation

9. Reporting Lost/Stolen Cards Call 1-800-248-4553 The Cardholder Must: b Notify Citi Bank IMMEDIATELY!! The University is responsible for all charges incurred until notificationThe University is responsible for all charges incurred until notification The bank will inactivate your card and issue a new cardThe bank will inactivate your card and issue a new card b Notify, in writing, the Procurement Card Program Administrator, the Department Coordinator, and Department Head immediately

10. Responsibility of Procurement CardHolder b Attend training/online classes when notified to b Understand your fiduciary responsibility to UTMB and consequences for misuse of State property b Read and understand the Program Guide b Make only authorized purchases within transaction and monthly limits excluding State of Texas sales taxes b Retain all receipts/support documentation and maintain up-to-date organized Transaction Log b Resolve ALL disputed charges in an expeditious and professional business like manner

11. Key Points for the Cardholder b Your Procurement Card is UTMB Property b Your Procurement Card is issued in your name All purchases made on your Procurement Card must be for official UTMB business onlyAll purchases made on your Procurement Card must be for official UTMB business only You are responsible for the security of the Procurement Card and the transactions made with itYou are responsible for the security of the Procurement Card and the transactions made with it b Failure to follow the guidelines when using the Procurement Card, could result in disciplinary action up to and including termination, and possible criminal prosecution.

12. Department Coordinator’s Responsibilities b Disseminate Information b Primary Contact for Procurement Card Program Administrator b Verification of Documentation b Insure compliance with UTMB Records Retention schedule b Allocation of transactions to appropriate fund source b Oversee Department Internal Controls

13. Specific Problem Areas b No Receipt b Sales tax charged b Inappropriate item purchased- Food, Gifts, Awards or Prizes to Employees b No Memberships Allowed! b No equipment Allowed! b No Office Supplies Allowed! b Failure to keep complete records, and transaction log, in an organized fashion

14. Specific Problem Areas b Incomplete delivery address instructions on packages (Purchaser full name, bldg address, ”L” room number, and contact phone number) b Failure to confirm Vendor “Warrant Hold” status and note on the Transaction Log b Failure to confirm HUB status and note on the Transaction Log b No Authorized Signatures on Log when using non-default funding sources

15. Compliance Issues b Institutions of higher education (UTMB) must verify a vender is not “On Warrant Hold” with the state of Texas for all non- emergency purchases over $500. b Purchase of services – IRS 1099 b Records Retention b No Equipment allowed on P-Card, use PO process only !

16. Very Important Cardholder Agreement Statement I AGREE TO USE THIS CARD FOR UTMB APPROVED PURCHASES ONLY and agree not to charge any personal purchases on my UTMB Procurement Card. I understand that UTMB will audit the use of my card and report any irregularities or discrepancies to the Vice President of Business Operations and Facilities. I FURTHER UNDERSTAND that improper use of my UTMB Procurement Card may result in disciplinary action including termination of employment and possible legal prosecution. Should I fail to use this card properly, I understand that UTMB will withhold any and all payments from me until such time that an amount equal to the amount of the debt or the discrepancy is repaid by me regardless of my UTMB employment status. Cardholder Signature

17. Remember Remember b Dept. Coordinators can not be Cardholders b All fields on the ”Transaction Log” must be completed b Warrant Hold - Purchases of $500 or more

18. Important Contacts b Citi Bank Contact Number b 1-800-248-4553 b Procurement Card Program Administrator: John Hall, 409-772-3592 b State of Texas Vendor Hold Status http://intranet.utmb.edu/warranthold/ b Texas HUB Vendor http://www.window.state.tx.us/procurement/cmbl/hubonly.html

19. Inherent P-Card Risks Inherent P-Card Risks b Failure to follow Guidelines b Incorrect Classification of Expenditures b Fraud / Theft b Bad Publicity

20. QUESTIONS Procurement Card Program Administrator: John Hall Ext. 23592