McMASTER UNIVERSITY

1. POLICY

McMaster University is committed to providing the university community with a method of purchasing goods and services directly from suppliers through the issuance of a Departmental Acquisition Card when each transaction does not exceed $2,500 and the total monthly purchases do not exceed $5,000. Purchases must be made in accordance with the Policy on Reimbursement of Goods and Services (AP-030).

2. PURPOSE

This document establishes the authority and responsibility of the cardholder and describes procedures related to the purchase of goods and/or services and payment of vendors' invoices through the system for low value purchases.

3. SCOPE

The use of this card  applies to all funds administered by the University regardless of the ultimate source of funding, unless specifically indicated otherwise by the funding source. Where funding regulations are different from University regulations, the funding regulations will take precedence.

This card may be used for any purchases and/or rentals of equipment, supplies and/or services with a value not greater than $2,500 per transaction, exclusive of foreign exchange, applicable import duty, taxes, freight, charges, etc. and that total monthly purchases do not exceed $5,000.

The acquisition card may not be used for the following purchases: travel expenses, business entertainment expenses (except those suppliers listed by the Director, Purchasing Resources); systems contracts; single purchases over $5,000; purchases at Titles Bookstore, University-wide purchasing agreements, e.g.blanket/standing orders, cooperative buying agreements, paperless; order contracts etc.

If a circumstance arises that is not specifically covered in the procedures below, the claimant or signing authority must adopt the most conservative course, within the "spirit" of this policy or consult the Purchasing or Accounts Payable Departments.

4. RESPONSIBILITY

The cardholder and/or user department is responsible and accountable for

• the supplier search and selection, product/service specification, quality quantity, price negotiation, freight charges, delivery requirements, ordering, expediting, amendments, returns, etc;
• the custody, control and use of the acquisition card as detailed in Appendix A;

• ensuring that funds are available to meet the terms of payment of the monthly statement;
• ensuring the accuracy of the shipments and communicating to the supplier any discrepancies, and for negotiating and arranging for the return of any goods ordered or shipped in error, found to be defective, requiring repair or replacement;
• acting on University business only. The University will not be responsible for the payment of purchases made by employees on their own behalf.

• Goods and services up to $2,500 per transaction and total monthly purchases of $5,000 may be purchased using the Departmental Acquisition Card.
• The acquisition card company will forward a monthly statement to the cardholder.
• The cardholder will review all transactions charged to his/her acquisition card and forward the Accounts Payment Summary Sheet (Appendix B) OR an Electronic Journal Entry to Accounts Payable by the 21^st of the same month. Failure to do so will result in a penalty fee and statement balance being charged to the default account specified on the original contract.
• The Summary Sheet must be supported with appropriate documentation as delineated in the Policy on Reimbursement of Goods and Services (AP-030).
• Purchases valued more than $2,500 must be processed as a Purchase Requisition. Refer to the Purchasing Policy (P-020) for guidelines.
• All goods purchased with University operating or research funds remain the property of McMaster University, unless the policy of the funding source dictates otherwise.
• The Acquisition Card does not allow for the exemption of Provincial Sales Tax (PST). The purchases of equipment for research purposes is PST exempt. It is up to the end user to bring this to the attention of the supplier upon making the purchase. Contact Purchasing Resources for a PST exemption certificate.
• All electrical and electronic goods sold or imported into Canada must be CSA approved or bear an HEPC special inspection label before being accepted. It is the cardholder's responsibility to ensure that the supplier complies with this stipulation.