First, personal use of the card constitutes theft. According to University personnel policies, theft is gross misconduct and requires immediate disciplinary action, up to and including termination. In these situations, the procurement card will be suspended; the matter will be referred to Human Resources for immediate action; and these matters will also be referred to the district attorney’s office for prosecution in accordance with State law. Second, major violations such as splitting transactions (which is an intentional violation of purchasing policies and State statutes) or failing to keep receipts will result in a letter from me to the cardholder’s and/or other responsible individuals’ personnel file(s) noting a failure to exercise their fiduciary responsibilities. A follow-up audit will be conducted within the year, and any additional major violations will result in suspension of the card and a referral to Human Resources for additional disciplinary action.

Folks, the auditors are able to identify split transactions within a month after they occur, and these transactions must stop. I realize the vast majority of you use the card correctly, but the actions of a few can jeopardize the credibility of the whole program. This has unfortunately resulted in the need for increased enforcement. I hope you will pay particular attention to your procurement card usage and administration in the future and implement the necessary controls to ensure that the card is being used and managed in accordance with policies. To further assist you in administering this program, we have developed a web site devoted solely to the Procurement Card Program. It can be accessed from the Treasurer’s Office site at http://admin.tennessee.edu/uwa/to/.  Also, fiscal policy on procurement cards is located at http://admin.tennessee.edu/acs/5051.htm.

I appreciate your efforts in making this program a success. Please feel free to contact me or the Internal Audit Department if you have any questions.