Handbook of Business Procedures
7.8.1 PROCEDURES FOR PROCARD HOLDERS
A. Responsibilities of the ProCard Holder
The employee whose name is on the ProCard has the sole responsibility for control and use of their ProCard. By submitting their application, the Cardholder acknowledges that they understand the full responsibility holding a ProCard entails and that they will adhere to all applicable policies and procedures.
B. Applying and Utilizing Training
In-person training for new Cardholders is required before they can receive a ProCard. Refresher training for existing ProCard holders is required each fiscal year. In order to remain a Cardholder in good standing, the Cardholder must demonstrate the following:
- Proper training and awareness of annual renewal expectations.
- Awareness of current policies.
- Knowledge of other relevant procurement methods and awareness of required steps during the procurement process.
- Compliance with ProCard disallowable purchase guidance.
C. Stewarding of University Funding
The ProCard provides the Cardholder with access to spend funds from their established default account. Cardholders must utilize their buying power to emphasize ethical purchasing, including but not limited to the following:
- Utilizing Historically Underutilized Businesses (HUBs), when possible.
- Justifying the purchase as “best value” when it is in the best interest of the University to use the particular product or service.
- Adhering to all federal funding requirements.
- Choosing to do business with only those entities that the United States does business with, and avoiding high-risk corporations or vendors and restricted regions.
- Utilizing only vendors in good tax standing.
D. Providing Support Documentation to Reconciler
Access to the ProCard should be carefully controlled, and all charges on the ProCard must be reconciled promptly to ensure all charges are legitimate.
- Cardholders, or a designated Card Manager, are required to turn in all receipts—with supporting documentation—within three business days from the date of purchase.
- If the Cardholder is not able to verify a transaction, they must follow the guidelines outlined within the Compromised Cards and Disputing Charges section.
E. Understanding the Liability and Consequences of Misuse
The Cardholder is personally responsible for all purchases made on their ProCard. The ProCard Office reviews purchases monthly to ensure proper usage. ProCard Cardholders not abiding by UT Austin policies are subject to consequences.
F. Securing the ProCard
Cardholders are responsible for ensuring cards are secure at all times.
G. Responsibility for Cancelling the ProCard
When the Cardholder no longer has use for or needs their ProCard, they must notify the Central ProCard Office and follow the steps outlined in ProCard Cancellations.
18.104.22.168 Authorized and Prohibited Use of ProCard for Low Risk and High Risk Software “Clickwrap” Purchases
The below Clickwrap Agreement (software terms and conditions) requirements are in addition to and not separate from other ProCard (procurement card) policies, and do NOT replace or supersede existing rules and requirements or any other applicable University polices.
- Definition. “Clickwrap Agreements” are standard online terms and conditions displayed on the computer screen that require a purchaser to click “acceptance” before the user can secure the contractor’s goods or services.
- Risks. As a rule, the terms of Software Clickwrap Agreements are not advantageous to the University and will typically not address required terms based on the University’s status as a government agency and institution of UT System (see Section 4 regarding contractual authority and obligations involving clickwrap). Clickwrap Agreements are drafted by the contractor to be beneficial to the contractor and are designed to cover a broad range of situations. Contractors are generally not open or even available to negotiate Clickwrap Agreements. Most Clickwrap Agreements involve a low dollar threshold, and the contractor is unwilling or unable to justify the transaction costs necessary to negotiate terms and conditions.
- Risk v. Efficiency. Although Software Clickwrap Agreements pose business risks, the University understands that efficiency needs may sometimes necessitate procuring goods or services involving a Clickwrap Agreement. Based on various risk vs. efficiency factors, the University will permit certain limited use of Clickwrap Agreements in specific situations as described below.
22.214.171.124 Authorized Purchase of Software for Low Risk Services
- Low Risk Procurements Only. ProCard purchases to secure goods or services through use of a Clickwrap Agreement are acceptable only for very low risk procurements (“Low Risk Services”) with a contract term not to exceed one (1) year and a total contract value less than $5,000. Use of the ProCard for Higher Risk Services as defined below is not permitted.
- Certain Requirements and Limitations for Technology
- Critical Accessibility Requirements for Technology. If Technology, Software, Software as a Service (SaaS), Web Service and/or Subscription-based software is secured under this policy and item is found not to be in compliance with accessibility requirements under Subchapter M, Chapter 2054, Texas Government Code, then an alternative accessibility option must be offered and approved by the University’s Electronic Information Accessibility Coordinator. If an alternative method is not approved, then the department or college must cease use of the technology and promptly terminate the related contract.
126.96.36.199 Higher Risk Procurements of Software Prohibited
Inclusion of any of the following service aspects of the Software would NOT classify as a Low Risk Software purchase and are prohibited from being secured through a Clickwrap (collectively, “Higher Risk Services”) via the ProCard:
A. any use of Category I or Category II Data (sensitive or confidential data, such as FERPA-related data). This includes sharing, access to, storage, or hosting services by the Clickwrap Provider. See Information Resources Use and Security Policy.
B. unsupervised interaction to students or any reasonable risks to students;
C. interaction with minors;
D. safety, health, or medical matters;
E. risk to University property;
F. access to the University network;
G. solicitation on campus;
H. providing any intellectual property of University, or any other aspects related to copyright or publication rights, or related to the University;
I. modifications to University property;
J. use of University property by another entity;
K. required use of the service by students;
L. processing, collection, or storage of University funds (ex: payment processer or reseller);
M. the vendor/contractor is a non-U.S. entity or individual;
N. providing the contracted entity with use of any University trademarks, logos or related marks; or
O. any other aspect or service that could reasonably be determined to signify a significant risk to the University or University community.
Higher Risk Services must not be secured through Clickwrap or click through and must be secured through either a purchase order or a negotiated agreement approved by the Business Contracts Office.
Delegated Authority; Contract Validity
Only an individual with a written delegation of signature authority from the President may authorize and execute contracts on behalf of the University. Although ProCard may be used to secure and pay for Low Risk Services under this policy, the Clickwrap Agreement itself may be invalid and unenforceable. If the requesting department desires to ensure validity of an applicable Low Risk Service Clickwrap Agreement secured via the ProCard, the Clickwrap Agreement cannot be utilized. The agreement will need to include required state and UT System provisions acceptable to the University. A purchase order will generally satisfy this requirement, as will a negotiated agreement approved by the Business Contracts Office.
Business and Legal Risks
Because Clickwrap Agreements are typically one-sided and drafted solely to the contractor’s benefit, any Clickwrap Agreement can come with business risks. Departments procuring Low Risk Services involving a Clickwrap Agreement in accordance with this Policy must understand the scope of the purchase and must accept the possible business risks, including paying for any damages and legal costs which may occur because of the purchase.
188.8.131.52 Reporting Requirements
For tracking and monitoring purposes, all items procured via the ProCard that are considered to be Technology, Software, Software as a Service (SaaS), Web Service and/or Subscription-based software must utilize the 1842 object code. Definitions of these items are as follows:
- Technology is defined as the application of scientific knowledge for practical purposes, especially in industry. This may also be machinery and/or equipment developed from the application of scientific knowledge.
- Software (or enterprise software) is a generic term used to refer to applications, scripts and programs that run on a device that can be on a desktop, web-based, in a cloud, or on a mobile device. It is the opposite of hardware, which describes the physical aspects of a computer. Examples of software are Adobe and Microsoft.
- Software as a Service (SaaS) is a method of software delivery and licensing in which software is accessed online via subscription, rather than bought and installed on individual computers. Some examples of SaaS applications are Salesforce, Slack and HubSpot.
- Web Services is any piece of software that makes itself available over the internet and uses a standardized XML messaging system. A web service is a collection of open protocols and standards used for exchanging data between applications and systems.
- Subscription-based software relates to a monthly or annual licensing model, allowing users to pay a per user fee. Customers typically pay an initial subscription upfront, and are entitled to use the software only during the subscription term, unlike a perpetual license, allowing them to use software indefinitely.