Purchasing/Pcard Guidelines

Every Dollar is a State Dollar

Every dollar that comes into the University is a state dollar. State dollars are considered public money, must be used for valid public purposes, and are subject to Arizona expenditure statutes, laws, rates, and policies. As state employees managing or spending these funds, we must adhere to the Code of Conduct for Employees Involved in Financial Activities in the State of Arizona Accounting Manual. As University employees, we must also follow our own financial policies, like the Misuse of University Assets Policy, which defines responsibilities for using and reporting the misuse of University property, including money.

It is crucial we think of our spending from the public perspective. Every purchase we make is paid for by tuition, state and federal funding, or other sources like grants, gifts, and sales. Our students, taxpayers, and other supporters depend on us to use our resources wisely. Additionally, every transaction is an audit record, and these audiences have a right to scrutinize University expenditures.  

Inappropriate spending can be catastrophic for the University in terms of media coverage and can lead to the potential removal of state and grant funding. Furthermore, individuals can be held liable for the repayment of funds and may be subject to administrative or disciplinary actions. If an individual intentionally misuses University money, they can also be referred for criminal prosecution. 

Reasonable Expenses

State and University requirements for purchases are based on a standard of reasonableness. This is defined under Policy 9.10 Requisitions/Reimbursements of the Financial Services Manual. What is considered a reasonable expense may vary by situation, circumstance, and even by person to person. Determining if your purchase is reasonable requires a thorough understanding of policy and standards and critical thinking. Use the information and suggestions provided below for support during this process. 

Before making any purchases, ask yourself these key questions:

How would others approach the situation, would they make the same purchase?

Your first step is to think about how another person, such as a taxpayer, would view what is purchased and the amount spent. An expenditure is considered reasonable “if the nature of the goods or services acquired and the amount involved reflect the actions of a prudent person under the circumstances.” To determine whether your potential purchase meets these criteria, try researching answers to these questions:

• Has the purchase been made before in other departments under similar circumstances?
• Are the costs comparable to past purchases of the same type of items within the University?
• Does the price of your preferred source match those of others offering like goods or services?

Is the purchase appropriate for the University?

For an expense to be considered reasonable, it also needs to be appropriate and directly support the overall mission and purpose of the University. You can reframe this question using a realistic scenario. For example, ask yourself:

“If a journalist or auditor were to view this transaction, would they be able to clearly know how the purchase benefitted the institution?”

If the answer could be or might be no, go back and review why you want to make the purchase and whether you need it for your job. This is a good idea even if you think the answer is yes. For every purchase, always provide why the expenditure was incurred and how it benefited the University, otherwise, it may be seen as unreasonable or unallowable.

Is the purchase allowable?

Finally, you’ll need to verify the purchase you want to make is allowable. This is essential, because if the expense is not allowable, you cannot use University funds to make the purchase. If you do purchase unallowable items, you will not be reimbursed. If the purchase was made with a PCard, you are required to make a repayment to the University. This is a violation of policy and can result in the cancellation of your PCard. Expenditure requirements, including examples of allowable and unallowable purchases, are listed in Policy 9.10 Requisitions/Reimbursements. Additional information on restrictions, requirements, and limitations for purchases made with a PCard are listed under 8.1 Restrictions/Requirements/Limitations in the PCard Manual.   

Unallowable Expenditures: Some examples of unallowable expenditures, which are not payable from any University funds, are:

1. Expenditures for employee social or recreational functions - where no business is conducted nor business objectives are present (for example, non-approved individual retirement farewells or employee recognition programs, picnics, or memorial services; Christmas or other holiday related parties and employee functions).
2. Gifts of any type for personal life events or for holidays (for example, for condolence, congratulations, birthdays).
3. Dues for membership in community service organizations (for example, Kiwanis, Rotary).
4. Charitable contributions or donations.
5. University parking fees and permits for faculty, staff or administrators personal use.
6. Fines and penalties (for example, parking fines and returned check charges).
7. Personal expenses (for example, passports and related expenses, personal phone calls, personal use of photocopy machines, supplies for home or personal use, such as, briefcases).
8. Alcohol.

The University of Arizona Purchasing Card (PCard) is a tool to facilitate and expedite eligible small dollar university purchases (under $10,000). To ensure compliance with the PCard program, all PCard holders and users must be familiar with Purchasing and Financial Services Policies.  Purchasing Policies:  https://policy.fso.arizona.edu/pur and Financial Services Policies https://policy.fso.arizona.edu/fsm.  Following these policies ensure our Department can continue to participate in the UA PCard program.  Failure to follow department and University PCard policy may result in the cancellation of the users’ PCard and/or inability to check-out the department PCard.

Roles/Responsibility

Pcard Reconciler: Stephani Schlak saschlak@arizona.edu

•    Will reconcile PCard transactions within 5 business days from the document creation date, requesting support documentation from cardholder/user as needed.
•    Will review the support documentation to ensure the following:
•    Verify that the items purchased are allowed to be purchased using the PCard
•    The invoice/receipt is itemized noting items, quantities, shipping and tax and matches the charged amount.
•    The ship to/bill to address is a UA address (not a home address).

Pcard Approver: Rachel Ramos rachelramos@arizona.edu / Christine Duddleston cmeranza@arizona.edu

•    Approve all PCard transactions within 10 business days from the doc creation date.
•     Ensure all supporting documentation is accurate, complete and appropriate.
•     Ensure that the business purpose/justification is clear and complete.
•    Ensure that the account code is correct and has the funds for the expense.
•    Ensure that the items purchased are allowed to be purchased using the PCard.
•    Will work with PCard User and Reconciler in addressing all PCard disputes and/or violations and follow through with correction steps.
•   Will ensure that PCard monthly statement and support documentation is organized and saved for 180 days; delete documentation that is older than 180 days.

Pcard Holder/User

•     Verify that the items/services to be paid with the PCard are allowable. A list of unallowable purchases is accessible at the following link: PCard Unallowable Expenses
•     If clarification is needed regarding hazardous and nonhazardous materials, please reach out to UA Risk Management and/or UA Research Laboratory & Safety Services. rlss-help@email.arizona.edu
•     After purchase is made, PCard holder/user must provide to the PCard Reconciler a completed Pcard Cover Sheet, all itemized invoice/receipt(s), and any other required documentation (such as agenda and list of attendees for business meetings) within two business days from the date of purchase.
•     If the payment was for travel related expenses, the approved travel authorization number will be provided on the PCard COVER SHEET.
•     If using the PCard for travel expenses, a travel authorization must be provided with the Pcard documents
•     Upload completed coversheet plus invoices/receipts to our PSIO Secure File Upload
•     Do not save Department PCard information for future purchases.
•     Respond to Business office follow up questions within two business days.

Sole Source:

The Sole Source justification must contain the facts that show there is only one source of supply for your purchase requirement. If your requirement is available from more than one source, it is not considered a sole source.

The principal investigator (PI) or the end user must furnish the following information:

1. State the specific features or performance specifications that are essential or required. Exterior / interior size or dimensions are only acceptable as justification if the space available is critical. Please note: sole source justifications, written by the vendor / manufacturer, are not acceptable. The PI or end user must write and sign the justification.
2. The PI or end user must specify the name of vendors who can furnish similar products and which of these vendors were contacted, along with a description of the essential requirement(s) that other vendors can’t furnish.
3. If your requirements involve purchasing a commodity that must be compatible with existing equipment and is available from only one source of supply, the end user must specifically explain this in the memo and furnish the previous purchase order number(s) for the existing equipment.
4. A written quote must be furnished, which indicates what discount(s) the University is receiving. A quote indicating a discount does not negate the Buyer from performing a price analysis. If the discount amount or percentage is not given on the quote, the Buyer may need to contact the vendor for that information in order to complete a price analysis. All purchases over $25,000 require a price analysis, and if Federal Grant or Contract money is involved, vendors must also complete one or more certification forms, which are supplied by the Buyer. These requirements must be satisfied prior to a purchase order being issued.

Please remember that what the PI or end user would like to have doesn’t constitute adequate justification for a sole source. A PI’s or end user’s preference for one vendor or product following market studies, quotations, demonstrations / testing, does not constitute a sole source.

Bidding and Proposals:

Purchases over $25,000 are subject to competitive bidding. If the purchase is over $100,000, Purchasing must send out a formal sealed RFP (Request for Proposals) or an RFB (Request for Bids) if the commodity can be supplied by more than one source. This is an Arizona Board of Regents requirement with which we must comply, regardless if the end user has already obtained quotes on his/her own.