INTRODUCTION
Welcome to the University of Connecticut MasterCard Purchasing
Card Program. The University Purchasing Card issued by, JP Morgan Chase, 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
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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 JP Morgan Chase. 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.
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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 (any value)
- Construction and Renovation Services
- Contract Agreements of any type that involve a signature
- Equipment (Valued 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 (except Advanced Printing)
- Radioactive materials
- Rentals of vehicles
- 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
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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 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 (Take out or grocery
store purchases for student activities & official
business meetings only) *
- Gasoline (State vehicles only)
- Hardware supplies
- Internet Purchases for Approved
Items Only (must be a secure site)**
- 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 (NO VEHICLES)
- Repair parts and materials
- Software and computer supplies
- Stationery (Advanced Printing only)
- Subscriptions (Departmental use only)
- Tools, fixtures and miscellaneous apparatus
*Must have business purpose,
formal agenda and list of attendees attached to receipt.
**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 October 1, 2006, given to all cardholders
for username and password
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CONTRACT
COMPLIANCE
While the purchasing card is a procurement tool, it does
not signal a change in policy regarding compliance with
University and State contract suppliers. 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. If the contract vendor can't supply your
required goods and services you can go elsewhere but you
should keep documentation in your procard envelope as
to why you did not use the contract vendor.
For Example: OfficeMax should
be your first contact for any and all office supplies.
OfficeMax is the authorized contracted vendor for all
consumable office supplies. Alternate sources can be used
ONLY if OfficeMax can't supply what you need. Keep in
mind that our contracted prices for consumable office
supplies are considerably less than catalog prices. Ordering
online is quick and easy with your Procard.
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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 departmentâs 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.
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