Updated: June 1, 2024, 1. Introduction, The purpose of the University of Massachusetts Bank Card program (the UMass Bank Card respectively) is to provide an efficient means to procure allowable business related goods, pay for business related travel expenses, and provide a mechanism for emergency purchases for suppliers that do not accept a purchase order., Definition:, The terms Supervisor and/or Manager are used interchangeably throughout this document. This role is responsible for reviewing cardholder’s expense transactions, and receipts. and the supervisor/manager must have the ability and responsibility of initiating HR actions if there is misuse of University funds. This person does not necessarily need to be the PeopleSoft HR supervisor or manager but was…, UMass Policies, Standards, and Procedures including:, University Procurement Policy University Business and Travel Expense Policy UMass Bank Card Standard, Department internal procedures, Funding sponsor requirements, 2. How It Works, The UMass Bank Card is a commercial credit card. The card works in much the same way as your personal credit card except the monthly statement amount is paid for by the University. Each card has specific spending limits and card controls: single purchase limit amount spending limit amount per month approved merchant category code (MCC) Each time a vendor enters the cardholder’s card number for a…, 3. Eligibility and How to Apply for a UMass Bank Card, A UMass Bank Card may be issued to a any individual that the University has issued an employee identification to, who: Has a frequent need to make purchases on behalf of their department. Has the approval from their Department Supervisor or Manager with the authority over the department budget. Has completed the required UMass Bank Card training. The employee must complete and e-sign the…, 4. Cardholder Responsibilities, UMass Bank Cards are issued for the exclusive use and responsibility of the specific individuals to whom they have been issued. The cardholder shall not authorize another University employee to use their card. Allowable charges incurred on the UMass Bank Card are a University liability. It is the cardholder’s responsibility to ensure their UMass Bank Card is safeguarded from loss, theft, or…, immediately, to the issuing bank of the UMass Bank Card and the Bank Card team via email to upst@umassp.edu. Lost/stolen messages should be marked as ‘urgent’. Cardholders are responsible for submitting all required receipts for all UMass Bank Card purchases into Concur. These receipts should be submitted with the cardholder’s allocated transactions within thirty days. All submitted reports are subject to…, A Missing Receipt Form is required for each line item for which a corresponding required receipt is missing., Excessive use (more than 3 in any 12-month period) of the Missing Receipt Form risks in the termination of the cardholder’s UMass Bank Card. If bank card transactions are not allocated/submitted on an expense report in Concur within 90 days of the transaction date the cardholder risks temporary suspension of the card until all transactions are in compliance with policy. Purchases made for the…, 5. Supervisor Responsibilities, Supervisors are responsible for confirming all transactions are allowable, legitimate business purposes. The supervisor shall also confirm there is no MA state sales tax being charged to the University. When approving the cardholder’s transactions in Concur, the supervisor is confirming they have performed a thorough review, and all transactions are in accordance with the UMass Bank Card Standard…, 6. Restricted Items, The following items, should not be purchased, using the UMass Bank Card: Alcoholic beverages - Please Refer to the Business & Travel Expense Policy and appropriate campus approvals matrix for specific campus allowability (section 1.03) Amazon Prime accounts Animals Any item prohibited by State or University policy Capital equipment (greater than $5,000) Cash advances of any type Cell phones Computers, laptops, tablets, and hard drives…, 7. Typical Purchases, Purchases can be made for the individual cardholder or to meet the department needs, provided the card is not shared. The following represents common, allowable, purchases for UMass Bank Cards, when not available, through BuyWays: Airline tickets. Books Conference registrations Food for University functions Fuel for State car or rental for University business. Institutional dues and memberships (only if vendor requires a credit card payment) Lodging Postage/Shipping Reprints of journal articles Vehicle rental for University business, 8. Foreign Expenditures, The UMass Bank Card may be used for the purchase of, tangible goods, from foreign vendors or if a faculty/staff member will travel to a foreign country. However, the BuyWays system should be the primary way to purchase software and services (defined below). Furthermore, using the UMass Bank Card to purchase software and services from foreign vendors is prohibited due to potential United States tax implications. If, however, the vendor refuses to accept a purchase…, Software and Services, Software Royalties/Licenses- This includes the rights to use images, art or text, music or music files, and other intellectual property. Web based services/software as a service (SaaS)- This includes subscriptions/memberships. Publishing services if the location of the services is not defined. Prizes/Awards/Human Subject Payments Services provided by foreign vendors within the United States- This…, 9. How to Activate the Card, UMass Bank Cards must be activated upon receipt by the Cardholder. Cardholders can either call the issuing Bank directly using the number listed on the back of the card to activate or go online. Cardholders will also need to create a pin number for the chip and pin card. Only a cardholder may retrieve this pin so the pin must be something the cardholder will remember. If the pin is forgotten, the…, 10. How to Use the UMass Bank Card, Prior to making a purchase, the cardholder must: Be sure that there is sufficient budget available for the purchase. Verify if the purchase can be made utilizing BuyWays instead of the UMass Bank Card Check the list of restricted items to ensure the purchase is for an allowable item. Be sure that the total amount of the purchase (including shipping) will not exceed the card’s applicable limit.…, 11. Sales Tax Exemption, The University is exempt from paying Massachusetts state sales tax for the purchase of goods delivered or picked up in Massachusetts, and, in most instances, from other states as well. It is the responsibility of the cardholder to ensure that sales tax is not charged when the University is exempt when making a purchase with the UMass Bank Card. The sales tax exemption number must be given to the…, 12. Receipts, Each transaction is required to have a corresponding receipt. The only exception to the receipt requirement would be receipts for travel related items (parking, tolls, taxi, etc.…) that are under $25.00, this is consistent with the Business and Travel Expense Standard. Receipts include the transaction’s proof of purchase (charge slips, cash register receipts, invoices, or packing slips that note…, 14. Disputing a Transaction, The cardholder is responsible for follow-up with the vendor in the event of erroneous charges, disputed items within 30 days of the transaction. Disputed billing can result from failure to receive goods, misuse, fraud, defective merchandise, duplicated charges, incorrect amounts or unprocessed credits. The vendor should always be contacted first in attempting to resolve disputes. If the issue…, 15. Audits, UMass Bank Card expenditures are subject to audit by internal and/or external auditors. The UMass Bank Card team will review transactions to ensure the cardholders and supervisors are following the UMass Bank Card Standard as required. Any non-compliance noted by the UMass Bank Card Auditor will be recorded in the UMass Bank Card Audit file for the cardholder with repercussions based on the…, 16. Misuse of the UMass Bank Card, The Board of Trustees has issued a Policy Statement on Fraudulent Financial Activities ( Doc. T00-051 , adopted August 2, 2000). Cardholders assume the responsibility for the protection and proper use of the UMass Bank Card. The following are a few specific examples of “misuse” of the UMass Bank Card:, Examples of personal misuse:, Purchases made for the sole personal benefit of the employee, whether through a vendor or directly. Assignment or transfer of an individual’s card to another person. Use of card to purchase restricted commodities, or for purchases that are inappropriate for the account charged., Examples of administrative misuse:, Lack of proper and timely expense allocation of the individual cardholder’s account. Excessive use of the Missing Receipt Form. Failure to respond to requests for more information on transactions from the UMass Bank Card Manager or UMass Bank Card Auditor. Failure to monitor and correct budget errors that arise on bank card transactions. UMass Bank Card activity is monitored by the UMass Bank…, 17. Cancellation, Suspension or Revocation of Cards, In the event that it becomes necessary to cancel a UMass Bank Card, the cardholder must surrender the card to the department head who will destroy the card and notify the UMass Bank Card team to close the account immediately. The department shall provide written notification to the UMass Bank Card team that the card is to be cancelled on a specific date along with an explanation why the card is…, 18. Lost or Stolen Cards, The cardholder must immediately report a lost or stolen card to the issuing bank. Representatives are available 24 hours a day, 7 days a week. For any lost or stolen cards, the cardholder must also inform the UMass Bank Card team within 24 hours. Please contact the UMass Bank Card team by emailing A&F Support directly. If the card has fraudulent charges, the bank will send the cardholder a…, Doc. T92-031, Appendix A, as amended | Procurement Policy, Passed by the Board of Trustees June 3, 1992 Revised: December 4, 1996 August 7, 2002 June 12, 2008 June 8, 2011 September 17, 2014 December 15, 2021
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I. Introduction, These Presidential Administrative Standards (“Standards”) provide additional detail related to the implementation by the University of Massachusetts (“University”) of the Board of Trustees Fiscal Health Policy (Doc. T18-026) (the “Policy”)., II. Definitions, To distinguish financial reserves that have been internally designated for specific use, the University will account for and report unrestricted net position in the designations defined below., Unexpended Plant & Facility Projects, – Designated to fund capital projects, equipment and the major renovation of all existing infrastructure and buildings including Research, Education & General (“E&G”), and Auxiliary., Auxiliary Enterprises, – Auxiliary enterprises are essentially self-supporting activities, which provide non-instructional support in the form of goods and services to students, faculty, staff and the public upon payment of a specific user charge or fee; this fund also includes the unrestricted net position of Worcester City Campus Corporation (“WCCC”)., Education & General, – Maintained by departments to fund operational requirements, academic initiatives, research, faculty recruitment and University initiatives., Quasi Endowment, – Portion of the unrestricted net position invested in the University of Massachusetts Foundation’s pooled endowment fund, intended to be invested for the long term unless otherwise approved by the President or a designated authority. , Stabilization Fund, – Designated to provide budgetary stabilization for operations due to unforeseen and / or uncontrollable circumstances to ensure responsible long-term financial stability. These funds should be used for an unanticipated one-time disruption in funding or catastrophic event and shall not be used to cover operating shortfalls that could have been anticipated and managed., Other Unrestricted, – Undesignated for a specific use or purpose and do not meet any of the above definitions. , III. Standards, Reserves should be funded primarily through operating results. Other receipts may be deposited into reserves on a case-by-case basis. Funds allocated to a reserve designation shall be used for the designated purpose. Unexpended Plant & Facility Projects Unexpended plant and facility funds are generally used for the construction, renovation and acquisition of the University’s assets. These…, Debt Service Coverage Ratio, This calculation is consistent with Moody’s Investor Service methodology. Debt Service Coverage Calculation text description: The image shows the formula for the Debt Service Coverage Calculation, which is the sum of Operating Surplus or Deficit plus Interest Expense plus Depreciation and Amortization Expense divided by the sum of Principal Payments plus Interest Expense. , Operating Cash Flow Margin Percentage, This calculation is consistent with Moody’s Investor Service methodology. Operating Cash Flow Margin Calculation text description: The image shows the formula for the Operating Cash Flow Margin Percentage Calculation, which is two steps. First the sum of Operating Surplus or Deficit plus Interest Expense plus Depreciation and Amortization Expense is divided by the sum of Operating Revenue…, Operating Margin Percentage, This calculation is consistent with the University’s established methodology. Operating Margin Percentage Calculation text description: The image shows the formula for the Operating Margin Percentage Calculation, which is three steps. Step 1 calculates the sum of Operating Revenues plus Government Appropriations plus Gifts plus Endowment Return Used for Operations plus Investment Income net of…, Total Cash & Investments, This calculation is consistent with Moody’s Investor Service methodology. Total Cash & Investments Calculation text description: The image shows the formula for the Total Cash & Investments Calculation, which is the sum of University Cash & Investments minus Debt Service Reserves plus Foundation Cash & Investments. , Total Cash & Investments to Operating Expenses Ratio, This calculation is consistent with Moody’s Investor Service methodology. Total Cash & Investments to Operating Expenses Calculation text description: The image shows the formula for the Total Cash & Investments to Operating Expenses Calculation, which is Total Cash & Investments divided by the sum of Total Operating Expenses minus Scholarship Expense plus Interest Expense. , Total Cash & Investments to Total Adjusted Debt Ratio, This calculation is consistent with Moody’s Investor Service methodology. Total Cash & Investments to Total Adjusted Debt Ratio Calculation text description: The image shows the formula for the Total Cash & Investments to Total Adjusted Debt Ratio Calculation, which is Total Cash & Investments divided by the sum of Outstanding Bond Principal plus Outstanding Commercial Paper plus Real…, IV. Exceptions, Exceptions may be granted in accordance with the provisions of the Policy, which shall include, at a minimum, the following: The campus must submit a plan to the Board of Trustees through the Senior Vice President of Administration and Finance and Treasurer. The plan must be for a specific project, investment or deliberate response to an unanticipated disruption in planned funding or…, V. Reporting, Beginning upon the release of the University’s FY27 Annual Financial Report, the Senior Vice President of Administration and Finance and Treasurer will provide the Board of Trustees a report reconciled to the Audited Financial Statements., VI. Roles and Responsibilities, The President, in consultation with the Senior Vice President of Administration and Finance and Treasurer and Chancellors, shall review, and as needed, update these Standards. The President may issue additional guidance specifying the accounting treatment for each reserve designation and its use. Chancellors shall implement and manage to the Policy and these Standards., VII. Other Policies and Reports, The Policy and these Standards should be implemented in conjunction with and any proposed changes should be reviewed along with the following University policies and reports: University Debt Policy – T09-050 Capital Planning, Land and Facility Use Policy – T93-122 Quasi Endowment Policy – T07-018 Report – 5-year Financial Forecast Report – University’s Annual Operating Budget Report – University’…
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