Policies and Guidelines:
General use - Prohibited purchases - Rules - Post-purchase

Procurement card holders not abiding by University policies will have their card privileges suspended.

Limits
Purchase Orders (POs)
Contracts
Blanket Orders and State Contracts (use of local or state funds)
Sales tax
Confirming vendor taxpayer status
Confirming vendor Office of Foreign Assets Control Specially Designated Nationals List status
Credits and returns

Limits
The following procurement card control limits are flexible and customizable per individual cardholder. If departments do not wish to specify limits, the default values will apply. To obtain a single transaction limit greater than $999.00 or billing cycle limit greater than $5,000.00, an administrative official must send a letter justifying the need to the Procurement Card Administrator.

• Transaction or "single purchase" limit   (Default = $999.00)
• Transaction or "single purchase" maximum limit ($4,500.00)
• Spending limit per card per billing cycle   (Default = $5,000.00)
• Number of authorizations allowed per day   (Default = no limit)
• Number of credit card transactions per cycle   (Default = no limit)

Purchase Orders
If the total payment to be made to a vendor for a single transaction, including freight, is $4,500.01 or more, a purchase order must be used. Do not split payments to a vendor to bypass the proper purchasing procedure. This will result in loss of card privileges.

Contracts
Contract and grant accounts (26 accounts) will need to identify certain items by object code. The codes and any required account number changes must be made on the VP7 document.

• Office supplies must be coded 1401
• Equipment over $500 must be coded 1837
• Computers must be coded 1847
• Telecommunication must be coded 1867

Blanket Orders and State Term Contracts
If the item to be purchased is on a State Term Contract or UT Blanket Order, the cardholder must verify that the vendor will accept a procurement card for payment. If the vendor does not accept the procurement card, a Purchase Order must be used.

Sales tax
All purchases made with a procurement card are exempt from State of Texas sales tax. The cardholder should monitor all transactions to ensure that tax is not charged on any procurement card purchases.

Confirming vendor taxpayer status in the State of Texas
For all purchases over $150.00, the cardholder is responsible for verifying that a potential vendor is in good tax standing with the State of Texas. Formerly, this information was verified by the Texas Comptroller’s Office using the Taxpayer and Vendor Account Information web site. Effective 11/1/2005, this web site will no longer provide vendor hold information.

Starting 11/1/2005, 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.
Example:

POINTPLUS will have "HOLD" next to the vendors name.

All vendor hold inquiries are now made through the Texas Identification Number System (TINS) and must route through the VID Section of the Purchasing Office if the vendor is not yet on file in the UT's system. A GGV with the vendors relevant taxpayer info must be submitted if a vendor is not on file in *DEFINE or POINTPLUS.

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.

Credits and returns
By rule of the State Comptroller, cardholders are not allowed to receive a cash refund for returned merchandise. All credits or refunds must be applied to the same cardholder account that was used for the original purchase.

This is page 6 of 7 in preparation for the
Procurement Card Certification Exam.