| Procurement Card History |
|
On October 16, 1995, the University of Nebraska-Lincoln announced
a new program that streamlines paperwork and boost accounting
efficiency while making it more convenient for departments to
buy supplies. The University of Nebraska Purchasing Card may be used to buy approved goods and services under $5,000. Under the existing system, departments paid for "small-dollar" items such as hardware supplies, professional subscriptions and books with the quick order/quick pay system or with a purchase order form. The NU Purchasing Card, issued by Bank One, NA Mastercard, made its debut in the fall of 1995 as part of a six-month pilot program. About 40 cards were issued on behalf of UNL to individuals in several test departments, including all research and extension centers. After completion of the pilot program it is planned to expanded the program to 1,000 additional employees within 5 years -- halfway to the goal of 2,000 employee cardholders by fall 2002. The Purchasing Card has advantages over the current quick order/quick pay system. Not only is it quicker and easier to use, the purchasing card program consolidates UNL transactions into a weekly computerized invoice, which is a significant step to reduce "paper strangulation" on campus. In the last fiscal year, UNL issued more than 70,000 purchasing transactions, of which 75 percent were less than $500. That means 53,000 separate checks were approved, written and sent to vendors for authorized purchases. When the new system is up and running at full speed, we expect 30,000 of those transactions to be consolidated into 52 payments over the course of a year. Once a week, issuing bank Bank One, NA consolidates all charges by authorized departmental representatives and sends a computerized invoice to UNL. An online or electronically accessible transaction recap is sent to each department, where itemized charges are reviewed and reconciled with departmental records. After all departments have examined and approved this "audit trail," Accounting processes a single payment to Bank One, NA. The whole procedure is done via computer, moving UNL a step closer to a "paperless environment," fitting well with NU President L. Dennis Smith's intiative to streamline administrative processes for greater efficiency. If you would like more information on this new program, contact Bill Bode, Director of Purchasing and Materials Management, at (402) 472-3609 or send us an email at: USERVICE1@UNL.EDU |
