EFFECTIVE DATE: September 17, 2021
ISSUE #: 8
PRESIDENT: Dr. Loren J. Blanchard
This document outlines the responsibilities and procedures related to using the University of
Houston-Downtown Procurement Card issued by the state-contracted bank.
2.1 Procurement Card (Pro-Card, P-Card): A charge card issued to an employee of the
university for the purpose of making authorized purchases on the university's behalf. The
university will issue payment for charges made with the Procurement Card.
2.2 Cardholder: University employee who is issued a Procurement Card. The Cardholder is
responsible for the use and safekeeping of the Procurement Card.
2.3 College/Division Administrator (CDA): University employee within each
college/division who is ultimately responsible for designating Cardholders and
overseeing the use of Procurement Cards within their college/division. Unless otherwise
indicated, the CDA may delegate P-Card administrative tasks to other individuals within
their college/division (Business Contacts) but retain primary responsibility for ensuring
that transactions are appropriately reviewed, approved, documented, assigned the correct
cost center and account and any other related tasks are completed in a timely manner.
The CDA may request the inactivation or cancellation of a P-Card within their
college/division at any time at their discretion.
2.4 Program Administrator: University employee responsible for administering the
Procurement Card Program for the university and acting as the primary liaison between
the university and the bank.
2.5 Program Coordinator: University employee responsible for training Cardholders on
proper use of the Procurement Card and bank software, which enables the Cardholder to
have access to their accounts through the Internet and for spot-checking statements to
identify and review questionable transactions.
2.6 Transaction Limits: A dollar limit on purchasing authority for each total charge made
with the Procurement Card. The transaction limit is $5,000 for federal funds and all other
funds (i.e., non-federal funds) per transaction. A single transaction/charge may include
multiple items but cannot exceed $5,000 for federal funds and all other funds (i.e., nonfederal funds). Transactions may not be split to avoid exceeding the transaction limit.
2.7 Monthly Spending Limit: A dollar limit on purchasing authority for total charges made
during a monthly billing cycle. The standard monthly spending limit is $15,000 per credit
2.8 Expense Report: A listing of all transactions charged to the Cardholder’s Procurement
Card account through the end of the monthly billing cycle. This statement is available
online through the bank’s software.
2.9 Supporting Documentation: A merchant-produced or non-university document that
records the relevant details for each item purchased including quantities, amounts, and
description of item(s), the total charge amount, and the merchant's name and address (e.g.
sales receipt, original invoice, packing slip, credit receipt, etc.).
2.10 Fraudulent Activity: The intentional use of a P-Card for non-university purposes.
2.11 Citi Manager-Expense Management: MasterCard bank Internet system that allows
cardholders to automatically view, track, and report MasterCard transactions.
2.12 Merchant Category Code (MCC): A code selected for a merchant to identify their type
of business and merchandise sold.
2.13 Business Contact: Individual who has been delegated the responsibility of reviewing,
documenting, and/or assigning cost centers and accounts to P-Card transactions by the
3.1 The University of Houston-Downtown Procurement Card Program provides a cost
effective way to make certain purchases by reducing the time and effort required to
complete the procurement-to-payment process. All Procurement Card purchases must
directly benefit the University of Houston-Downtown and be within the guidelines of this
document. The Procurement Card may not be used to make personal or other purchases
that do not benefit the university directly. All Procurement Card transactions must be
verified to be accurate and the correct cost center and account must be assigned to each
3.2 An original completed Cardholder Application/Approval Form for University
Procurement Card must be submitted for each prospective Cardholder to the Program
3.3 The Cardholder Application/Approval Form must contain the default cost center (not a
sponsored grant cost center, unless otherwise approved by the Associate Vice President
for Research and Sponsored Programs or his/her designee) used to clear the Cardholder’s
transactions and the signature of the applicant, applicant’s supervisor, and
3.4 The applicant must complete Procurement Card training and sign a Cardholder Procurement Card Agreement acknowledging responsibility for proper use of the card
before the card is released.
3.5 For security purposes, all Procurement Card applicants and Cardholders must receive
their salary or wage from the University of Houston-Downtown through direct deposit,
rather than a check.
3.6 Cardholders must complete an annual review of Procurement Card procedures and
electronically acknowledge the Cardholder Procurement Card Agreement in order to
maintain their P-Card privileges. All College/Division Administrators whose college or
division has a P-Card and their designated Business Contacts must also complete annual
training. All CDA and Business Contacts must also electronically acknowledge the
College/Division Administrator Procurement Card Agreement. If Cardholders do not
complete annual training within the required timeframe, their P-Card will be inactivated
until the training is completed. If College/Division Administrators and Business Contacts
do not complete annual training within the required timeframe, the Program Coordinator
may inactivate the P-Cards that they administer until the training is completed.
3.7 Cardholders are authorized to use the Procurement Card to purchase any merchandise or
services required as a function of their duties at the university, except for items listed in
3.8 Only the Cardholder to whom the card is assigned is authorized to use the card, and this
person is responsible for ensuring that all charges made with the card are in compliance
with this document.
3.9 Questions concerning appropriate card use should be directed to the Procurement Card
Coordinator or Administrator. If a Cardholder is not sure whether a purchase is allowed,
the Cardholder should not make the purchase until they confirm with their
College/Division Administrator, the Program Coordinator, or Program Administrator
that the purchase is allowable.
3.10 The Procurement Card must never be used to purchase items for personal use or for non-university purposes even if the Cardholder intends to reimburse the university.
Procurement card transactions are subject to unannounced audits by the Internal Auditing
Department and the Program Coordinator.
3.11 The College/Division Administrator (or designee) is responsible for identifying and
investigating irregular transactions such as transactions prohibited by university policy.
If fraudulent activity is suspected, the College/Division Administrator (or designee) must
report the suspected fraud in accordance with SAM 01.C.04, Reporting/Investigating
3.12 A Cardholder who makes an unauthorized purchase with the Procurement Card, such as
purchasing items for personal use/non-university purposes, will be subject to disciplinary
action, up to and including termination of employment from the university, and criminal
prosecution. Additionally, an employee may be subject to sanctions, as outlined in 3.14.
3.13 A Cardholder who makes inappropriate use of the Procurement Card, as outlined below,
may be subject to disciplinary action, up to and including termination of employment
from the university, and criminal prosecution. Additionally, an employee may be subject
to sanctions, as outlined in 3.14.
3.13.1 Cash advances
3.13.2 Consulting services
3.13.3 Travel-related expenses, other than for registration fees and any other travel related charges, must be reviewed by the Procurement Card Coordinator and
the Travel Office prior to the transaction. Expenses for toll roads (EZ Tag),
vehicle registration fees for UHD fleet vehicles and parking for UHD fleet
vehicles within the Houston metropolitan area are not considered travel-related
expenses and are allowed on the Procurement Card.
3.13.4 Gasoline for a rental or personal vehicle
3.13.5 Financial services
3.13.6 Scholarships, stipends, tuition, and fees
3.13.9 Transactions greater than $5,000 for federal funds and all other funds (i.e., nonfederal funds). Splitting purchases between two or more transactions to stay
under the purchase limit is prohibited.
3.13.10 Purchases that require a Purchase Order
a. Radioactive or hazardous materials, controlled substances, x-ray machines
b. Class 3b and 4 lasers and biological safety cabinets
d. Equipment lease/rental or maintenance agreements
3.13.11 Gratuity exceeding 20 percent of the transaction amount on transactions that
normally require gratuity, such as business meals.
3.13.12 Alcoholic beverages may not be paid from state-appropriated funds or from
funds under the control of the Athletics Department, as well as federal indirect
cost funds (funds 2072 and 2091).
3.13.13 Other purchases prohibited by university policy (e.g., flowers for employees or
family members of employees)
3.13.14 Professional membership fees to an organization not approved by the President.
Note: If any portion of membership fees paid to an approved organization is
designated for political activities, the Cardholder must refund that portion of
the membership fees to the university, since university funds may not be used
for political-related activities. For a list of approved organizations please refer
to the Accounts Payable’s website, UHD Approved Membership Organization Listing.
3.13.15 Employment advertisements for staff positions that have not been approved by
Employment Services and Operations or for non-employment ads that have not
been approved by University Relations. External advertising for vacant faculty
positions is placed by the hiring department. Departments are responsible for
developing the faculty external ad and applicable artwork using the External
Job Posting Template and following UHD’s official graphic standards, in
reference to Advertising Policy PS 09.B.05
3.13.16 Promotional materials that are to be distributed off campus that have not been
approved by the Office of University Relations prior to publication.
3.13.17 Items charged to state funds are not allowed.
3.13.18 All purchases requiring a contract (including grants and cooperative contracts),
regardless of the dollar amount, are not allowed on P-Card.
3.13.19 Items charged to grants that are not allowed by sponsor
3.13.20 Other restrictions issued by the Cardholder’s college/division
3.14 Resulting sanctions for the above violations within a fiscal year include:
1st Offense: Email or verbal warning from the Program Administrator or Program
Coordinator will go to the Cardholder and Supervisor/College Division
Administrator. Card will be suspended until retraining is complete.
2nd Offense: Suspension of card for 90 days
3rd Offense: Suspension of card for six months
3.15 A Cardholder who commits one or more of the following violations within a single fiscal
year will be subject to the sanctions outlined in 3.16.
3.15.1 Late Paperwork
a. Verification report not uploaded to Finance System by the deadline
3.15.2 Missing Receipts
3.15.3 Incomplete/incorrect paperwork
a. Missing cost centers
b. Missing accounts
c. Verification report not signed by the Cardholder or certifying signatory
d. No additional documentation/approval for business meals and official
e. No itemized receipt (or other acceptable form of supporting documentation
indicated in Section 4.3)
f. Inappropriate sales tax paid from Texas vendors (exemption for food and
g. Incomplete P-Card statement download online from Citi Manager-Expense
Management (downloaded before statement closes)
3.16 Resulting sanctions for the above violations within a single fiscal year include:
1st Offense: Email or verbal warning from the Program Administrator or Program
Coordinator will go to Cardholder and Supervisor/College Division
2nd Offense: Card will be suspended until retraining has been completed and
supervisor is notified.
3rd Offense: Suspension of card for 90 days.
3.17 It is the Cardholder's responsibility to safeguard the Procurement Card and its related
account number at all times.
3.17.1 Cardholders should keep their Procurement Cards in a secure location at all
3.17.2 Cardholders should not allow anyone else to use their Procurement Cards and/or
Procurement Card account numbers.
3.17.3 Cardholders should not write their Procurement Card account numbers where
they can be easily seen by others.
3.18 If a Procurement Card is lost, stolen, or damaged, the Cardholder must notify the bank
immediately at 1-800-248-4553. Representatives are available 24 hours a day to provide
3.18.1 Cardholders must notify the Program Coordinator if their cards are lost, stolen,
or damaged within 24 hours after reporting the incident to the bank.
3.18.2 After the bank and Program Coordinator have been notified, a new Procurement
Card may be issued to the Cardholder by the Program Administrator.
3.18.3 A Procurement Card found after it has been reported lost or stolen must be
returned to the Program Coordinator. The same procedure applies if a card is
3.18.4 If a card is not lost or stolen but needs to be canceled for some other reason, the
Cardholder must notify the College/Division Administrator. The P-Card should
be cut in half and submitted to either the department Business Contact, who will
submit both card halves to the P-Card Program Coordinator, or directly to the
P-Card Program Coordinator.
3.19 Whenever the Cardholder changes departments, the Application/Approval Form must be
completed; signed by the Cardholder, Cardholder’s supervisor, and the College/Division
Administrator; and forwarded to the Program Coordinator.
3.20 Whenever either of the following occurs, the College/Division Administrator/Business
Contact can email the information to the Program Coordinator, who will make the
3.20.1 The default cost center changes (but the Cardholder’s department has not
3.20.2 Cardholder transfers to a new position within the same department and requires
the use of a Procurement Card as part of their new duties
3.21 Cardholders who no longer require a Procurement Card in their new position or transfer
to a different department must cancel their card per the instructions in Section 3.18.4.
3.22 Prior to separation from the university, Cardholders must give their Procurement Cards
and corresponding support documentation to the College/Division Administrator/DBA.
If the Cardholder is the College/Division Administrator, the Procurement Card and
support documentation must be given to the Cardholder's immediate supervisor. In either
case, the card must be canceled as per instructions in Section 3.18.4.
4.1 Making a Purchase with the Procurement Card
1. Merchants. Cardholders should purchase from preferred merchants whenever
possible to take advantage of pricing and terms negotiated on a university-wide
contract basis. State law (Texas Government Code 403.055) requires state agencies
and universities to verify that prospective vendors are not “on hold” with the State of
Texas before an order is placed with the vendor for credit card purchases over $500.
Cardholder must determine the vendor’s hold status by running the following query:
UHS_AP_SEARCH_FOR_VENDORS. Cardholders may search by vendor name,
tax ID, zip code, or the vendor ID number in the Finance System. When searching, a
% (wildcard) may be entered for fields that are not in the search criteria. When Open
for Ordering is “Y,” the vendor is not on hold. A vendor’s hold status can also be
determined by looking at the Open for Ordering box in the Vendor Identifying
Information page. If the box is checked, the vendor is not on hold and the order may
be placed. Cardholders/departments are required to include a screenshot or PDF
printout of the vendor’s status as backup for each P-Card transaction $500 or above.
If the vendor cannot be found in the UHS Finance System, please contact the UHD
Purchasing or Accounts Payable departments. Also, Cardholder must confirm that
the selected merchant accepts MasterCard. If not, another vendor must be chosen, or
the purchase must be made using the Purchase Voucher process.
A. When making purchases in person, the Cardholder must sign the charge receipt
and retain the customer copy.
B. When making purchases from Texas vendors, exemption from State of Texas
sales tax must be claimed using the university’s Tax Exemption Certificate.
C. When making purchases that require a delivery, Cardholders should give the
merchant the card account number and expiration date embossed on the card and
the following information:
1. Cardholder name and phone number
2. Department name
3. Complete campus delivery address, including building name and room
4. Cardholders are encouraged to receive their own shipments. However, if
someone else will be receiving a shipment on the Cardholder's behalf, the
Cardholder should notify them in advance. Regardless of who receives the
shipment, the Cardholder is responsible for verifying that the order was
received and all documentation (packing slips, mail order form copies, etc.)
related to the purchase were obtained.
4.2 Merchandise Returns and Exchanges. The Cardholder is responsible for contacting the
merchant when merchandise purchased with the Procurement Card is not acceptable
(incorrect, damaged, defective, etc.) and arranging a return for credit or an exchange.
A. If merchandise is returned for credit, the Cardholder is responsible for obtaining
a credit receipt from the merchant and retaining that receipt with the support
documentation for that purchase. Receiving cash or checks to resolve a credit is
B. If merchandise is returned for credit, the Cardholder/Business Contact should
verify that a credit appears in the Citi Manager-Expense Management by the end
of the next billing cycle.
C. If merchandise is to be exchanged, the Cardholder is responsible for returning the
merchandise to the merchant and obtaining a replacement as soon as possible.
Documentation showing the proper resolution of the exchange is to be retained
with the supporting documentation for that purchase.
4.3 Supporting Documentation. Cardholders must submit the following documentation to the
department Business Contact/business office for each P-Card transaction:
A. Receipts and/or other supporting documentation (Web-printed form, packing slip,
etc.) provided by the vendor
B. The business purpose and benefit of the transaction must be written on the receipt
or attachment. The following information must be provided for business meals,
official functions, and discretionary expenditures, in accordance with SAM03.A.02, Entertainment Expenditures:
1. Date, time, and location of event. If alcoholic beverages were served, the time
that alcohol was served is also required.
2. Detailed description of the nature and purpose of the function
3. If 10 or fewer attendees, names of the participants, their titles, affiliations,
and/or relation to the university
4. If more than 10 attendees, the number of attendees and the general
relationship of the guests to the university
5. Approval from the responsible vice president if business meal total, including
tax and gratuity, is over $100 per person
C. Documentation of an advertisement’s approval by Employment Services and
Operations or by University Relations, as appropriate
D Gift cards or certificates may be purchased if they are approved by the appropriate
College/Division Administrator on the Gift Card Request Form. In addition:
1. Gift cards must be kept in a secure campus location (e.g., locked drawer or
safe) until distributed.
2. The distribution of the gift cards/certificates must be documented, including
date of distribution, name of recipient, and signature of recipient
acknowledging the receipt. If the gift cards are for a confidential human
subject study, the department must retain distribution records in their files for
seven fiscal years after the grant expires. Otherwise, distribution records must
be uploaded to the P-Card page in the Finance System when the distribution
3. Someone other than the gift card custodian will review the gift card records
at least once a month to verify that all distributed and undistributed gift cards
are accounted for and report any discrepancies to the College/Division
4. If the department awards a gift card/certificate to an employee, the department
is also responsible for reporting this amount to the Procurement Card
Coordinator as the employee’s taxable benefit in accordance with SAM03.D.06.
5. If the department awards a gift card/certificate to a non-employee and the total
amount received by the non-employee in a calendar year is $600 or more, the
department is responsible for submitting the non-employee’s W-9 Form and
reporting the amount to the Procurement Card Coordinator so that the nonemployee can be issued a Form 1099-MISC.
6. If the department awards merchandise (i.e., not cash or a gift card) to an
employee and the fair market value of the merchandise is more than $50, the
department is responsible for reporting the amount to the Tax Department as the employee’s taxable benefit in accordance with SAM 03.D.06. If the
department gives award merchandise to a non-employee and the total fair
market value of the merchandise received by the non-employee in a calendar
year is $600 or more, the department is responsible for submitting the nonemployee’s W-9 Form and reporting the amount to the Procurement Card
4.4 Recording Transactions in the Financial System. The Cardholder’s Business
Contact/designee must complete the following tasks by the 25
th of each month, or as
stated in the monthly Procurement Card statement email from the
Coordinator/Administrator, for the most recently completed billing cycle:
A. Enter account and cost center, if other than default cost center, into the online
bank system for each card transaction
B. Verify that items charged to grants are allowed by sponsor, and approved by
C. Ensure that purpose/benefit information is properly documented for each
transaction. The purpose/benefit may be recorded on receipts or in the online bank
D. Verify that all transactions are supported with the receipts or other supporting
documents (i.e., invoice, packing slip, etc.). Obtain any missing receipts or
additional documentation/information needed from the Cardholder.
E. Ensure that the full credit card number is not visible on any receipts or backup
documentation before they are uploaded to the Finance System. Only the last four
digits of the card number may be displayed on uploaded documents.
F. Print Citi Bank Expense Report and obtain signatures from the Cardholder and
certifying signatory on the Citi Bank Expense Report. The certifying signatory
1. Appropriateness of transactions
2. Correct cost center and account
3. Complete supporting documentation
4. Cardholder signature
G. Ensure that all purchases are made in compliance with the purchase guidelines in
this policy. Obtain additional approval/documentation if necessary.
H. The College/Division Administrator (CDA) or designee must upload the
completed Billing Statement, receipts, and other supporting documentation to the
PeopleSoft Finance System no later than the 25th of each month, or as stated in
the monthly Procurement Card statement email from the
4.5 Cardholder Verification of Charges no later than the 25th of each month, or as stated in
the monthly Procurement Card statement email from the Coordinator/Administrator.
Cardholders must review and sign the Citi Bank Expense Report for the billing period
just ended to indicate the following:
A. All charges made by Cardholder are listed on the Verification Report for the
B. All charges are for university business purposes and in compliance with
C. The Cardholder will determine whether any charges should be disputed and note
any exceptions on the Verification Report
Any exceptions to the above should be noted on the Verification Report by the
Cardholder, and any disputed charges should be reported to the Program Coordinator as
4.6 Disputed Charges
A. If an erroneous charge appears on the Billing Statement, the Cardholder must
ask the vendor to reverse the charge.
B. If the vendor agrees to reverse the erroneous charge, the Cardholder must write a
memo indicating when the request was made and submit the memo in lieu of an
C. If the vendor refuses to reverse the erroneous charge or agrees to reverse the
charge but does not do so by the end of the next billing cycle, the Cardholder
must complete the Statement of Disputed Item Form and send the form to the
Program Coordinator in Purchasing immediately, who will forward the form to
the bank. The bank requires that the dispute form be submitted to them no later
than 60 days after the end of the billing cycle where the transaction originally
appeared. The Cardholder must submit a copy of the Statement of Disputed Item
Form to the department in lieu of an itemized receipt.
D. The Cardholder should verify that a credit appears on the next statement or the
following statement for the disputed charge. If a credit does not appear on one of
the next two statements, the Cardholder should notify the Program Coordinator. The Program Coordinator will follow-up with the bank and notify the Cardholder
of the resolution.
4.7 Payment to the Bank. After the billing cycle ends, the Program Coordinator will
download transactions from the bank system into system-generated vouchers. Accounts
Payable will post the vouchers, Citi Bank will be paid by ACH direct deposit.
Responsible Party: (Reviewer): Executive Director, Budget, Procurement and Contracts
Review: Every three years on or before August 1st
Signed original on file in Employment Services and Operations.
Issue #1: 05/17/06
Issue #2: 09/01/07
Issue #3: 01/08/10
Issue #4: 03/09/15
Issue #5: 03/19/18
Issue #6: 07/05/19
Issue #7: 02/21/20
Cardholder Application/Approval Form
Cardholder Procurement Card Agreement
College/Division Administrator Procurement Card Agreement
UH System Administrative Memorandum 01.C.04
UH System Administrative Memorandum 03.A.02
UH System Administrative Memorandum 03.D.06
UHD Approved Membership Organization Listing
Texas Government Code 403.055
Tax Exemption Certificate
Gift Card Request Form