Purpose:

The purpose of this Policy is to provide a clear and fair method of evaluating compliance with University of Alabama (UA) Policies and Procedures. This information is solely intended to be a method of tracking any developing trends prior to issues becoming severe in nature.

Policy Statement:

This Policy applies to all purchases made with a University of Alabama Purchasing Card (P-Card). All purchases must be made in compliance with UA P-Card Policy, UA Travel Policy and UA Spending Policy. This policy is not intended to cover every possible situation. Exceptions may be authorized at the discretion of the Director of Procurement Services and/or the Associate Vice President for Finance.

Introduction

It is the Cardholder’s responsibility to ensure that the P-Card is in compliance with University, state and federal policies. The following point values have been assigned and will be assessed for P-Card findings discovered during the routine audit of submitted expense reports.

Non-Compliance FindingsPoint Total
Personal Purchase15
Split Transaction used to circumvent the single transaction limit of a
P-Card including the use of another Cardholder's P-Card or issuance of a
Purchase Order for part of the order.
2
Purchase of Restricted Item(s)1
Itemized Receipt is missing0.5
Reconciled P-Card Transactions not received by the 11th of the month

1st late notice

0.5

1st late notice

0.5

3rd late notice

Temporary
Suspension
of P-Card until
Expense Report is
Received
Justification of purchase (business purpose statement) is missing, if
necessary
0.5
Sales tax was paid inappropriately0.5

1.0   Procedure for Non-Compliance Findings

When a total of 15 points has been accumulated over a running 24-month period, a P-Card may be revoked. Mandatory re-training and a memo from the Budget Manager or Supervisory Approver will be required to reinstate a cardholder.

1.1  If a cardholder goes finding-free for one year, accumulated points will be reduced in half. Findings that are older than two years will not count.

1.2  If the cardholder prefers to not wait a year for the points to reduce automatically, the cardholder has the option of reducing his or her point total by 50% by completing a retraining session. One optional re-training session is allowed in a two-year period to reduce any accumulated points.

1.3  Procurement Services reserves the right to require re-training or to revoke cards for repeat findings. There will be no point reductions for mandatory re‑training.

1.4  The University of Alabama may terminate the use of any P-Card at any time without reason or cause.

2.0 Corrections

Points will not be assessed in situations where an error was made, but was corrected prior to review. When expense reports are due before the error can be fully resolved, a notation should be included with the expense report to indicate that the cardholder is working on a solution.

3.0 Notification

Cardholders will receive email notifications under the following circumstances.

3.1  Non-Compliance Finding

A notification of a non-compliance finding(s) and the total number of points assessed will be emailed to the cardholder and supervisory approver. This notification will also include up-to-date information on any prior findings and total points previously assessed.

3.2  Point Reductions

Cardholders will receive notification in the event that their overall points total is reduced. The supervisory approver will also be copied on these messages.

Official Policy

The signed version of this policy is available in PDF format. Every effort has been made to keep this page in sync with the official policy. However, if any inconsistencies are located, the official policy will be followed.