Subject: [faculty] New rules for usage of departmental procurement cards
From: "Soren P. Sorensen"
Date: Wed, 9 Mar 2005 14:27:59 -0400
To: "Physics Faculty" , "Physics-staff"

To            All departmental procurement card holders
From        Soren
Subjects    Corrective actions required as a result of an audit
                of the department's use of procurement credit cards


The use of procurement cards within the Department of Physics was recently audited and as a result it is unfortunately necessary to tighten the rules for usage of these cards as explained below. If you do not follow both these instructions and all the applicable fiscal rules from the university, your procurement card will be withdrawn. I know that some of you might find these measures draconian or at least cumbersome, but they are necessary in order to be sure that we do not get in trouble with the fiscal authorities at UT. Please remember, that we are living in the Post-Schumaker period. I also want to keep our current flexible departmental purchasing system, where we do not require you to get a purchase order number before each purchase as is common practice in many other departments and private companies. But in order to avoid that, you will have to use your procurement card prudently. If you are in doubt ask Glenna or me.



1) All major purchases (>= $2,000) either have to be done through a bidding process or through vendors that have standing contracts with UT. If the combined purchases by all people within the department exceeds $2000 to a single vendor within a year, that vendor has to have a contract with UT.

Rule: If you are going to purchase anything on your procurement card above $500 discuss it first with Glenna in order to ensure that you are purchasing the item(s) from an approved vendor or we that we are not exceeding the $2000 limit from an non-contract vendor.

This rule in particularly important for the people doing purchases within our two shops.



2) You have to have a receipt for every single purchase. Too many are too flippant with this requirement.

Rule: If you over a period of one year are not handing in receipts for two or more purchases you will loose your procurement card. If you loose a receipt you have to provide a written explanation.



3) Your monthly statement has to be signed by you.

Rule: If you over a period of one year have not signed your statement twice you will loose your procurement card.

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  Soren P. Sorensen    Department of Physics
  Professor and Head   University of Tennessee
                       Knoxville, TN 37996-1200

  TEL: 865-974-7805    sorensen@utk.edu
  FAX: 865-974-7843    http://www.phys.utk.edu/sorensen
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