Welcome to the Purchasing Card Policy Changes Webinar The meeting will begin promptly at 10:00 AM

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Welcome to the Purchasing Card Policy Changes
WebinarThe meeting will begin promptly at 1000
AM

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Purchasing Card Policy Changes An Overview
of Statewide Purchasing Card Policyand HB 1113
State of Georgia Department of Administrative
Services
July 21, 2008
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Webinar Guidelines
Questions
Use the Question and Answer or Chat messaging
feature on the Webinar Panel
Responses to Questions
Questions will be answered at the end of the
presentation
Follow Up
A recording of the Webinar will be posted on the
State Purchasing Division website
Additional Questions
You can mail additional questions through the
Purchasing_at_doas.ga.gov email address
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Your Presenter

• Title State Cards Program Manager
• Accomplishments Over 16 years of bankcard
  experience
• Contact Paul.Kurtz_at_doas.ga.govPhone
  404.656.5344

Paul Kurtz
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Agenda

• Overview of HB 1113
• Statewide Purchasing Card Policy
• Local Program Roles and Responsibilities
• About the P-Card
• Links and Resources
• Questions

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Overview of HB 1113
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State Code 50-5-83

• What the new law does
• Defines unlawful use of the purchasing card and
  other forms of payment
• so as to prohibit the use of state funds by
  purchase orders, government contracts, credits
  cards, charge cards, or debit cards, or other
  such payment vehicles for personal benefit or
  gain
• Provides requirements for the State Purchasing
  Card Program
• Defines penalties for violators
• Authorizes the communication of rules and
  regulations

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State Code 50-5-83 (Continued)

• What the new law doesnt do
• Make it harder or less beneficial to use the
  purchasing card
• Change the intended use of the card
• Present a reason not to use the card in a proper
  and legal manner

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State Code 50-5-80 (Continued)

• Use of the Purchasing Card for unauthorized or
  personal purchases is prohibited
• Any person who obtains goods or services in an
  amount less than 500 will be guilty of a
  misdemeanor of a high and aggravated nature
• Purchases equal to or greater than 500 shall
  constitute a felony
• In addition to criminal consequences, there are
  also employment and restitution repercussions
• Immediate termination of state employment
• Restitution of the purchase amount plus interest
• Any person (including supervisors or other
  approving officials) who knowingly or through
  willful neglect assists are subject to the same
  penalties

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State Code 50-5-83

• O.C.G.A. 50-5-83(b)(12) requires criminal
  background checks on all employees hired for
  positions that are eligible for purchasing card
• Existing Cardholders as of July 1, 2008
• Background checks required prior to the next
  renewal date of the individual P-card
• Discovery of any misdemeanors or felonies
  related to financial wrongdoing, theft, or other
  act of dishonesty requires cardholders
  privileges immediately terminated and
  notification of State Cards Program Manager
• New cardholders after July 1, 2008
• Criminal background check require prior to
  issuing card
• Discovery of any misdemeanors or felonies
  related to financial wrongdoing, theft, or other
  act of dishonesty eliminates employees
  eligibility to have a card

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State Code 50-5-83 (Continued)

• O.C.G.A. 50-5-83(b)(12) also requires credit
  checks on all employees issued a purchasing card
  after July 1, 2008 prior to issue
• Obtaining and interpreting the credit checks has
  been left to the discretion of the agency or
  institution
• DOAS can not advise on the law requiring the
  credit check
• Agencies and institutions should work internally
  and with their HR departments to create internal
  policies regarding credit checks

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Statewide Purchasing Card Policy
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Overview of Policy Changes

• Use of the purchasing card for personal purchases
  prohibited
• Misdemeanor and Felony violations defined
• Consequences for Cardholder and Approver
• Revision of statewide program administration
• two sections
• Statewide Program
• Local Program roles and responsibilities
• Use of Card
• Program Compliance
• Legal Issues

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State Policy Update

• DOAS administers the contract
• SPD personnel are resources regarding policy and
  implementation
• State Purchasing Card Policy establishes minimum
  standards of usage
• Official Policy is posted on the State Purchasing
  website
• http//statepurchasing.doas.georgia.gov/vgn/images
  /portal/cit_1210/9/51/116137225P-cardPolicyNews.pd
  f

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State Cards Program Manager

• Duties and responsibilities
• Develop the State Purchasing Card Policy
• Review Policy at least annually
• Communicate policy changes to program users
• Serve as the central point of contact on all
  issues of policy and procedures
• Official liaison between the Bank and all program
  users
• Review all requests for exceptions to the Policy
• Work with program users to determine new ways to
  use the p-card within legal and policy
  requirements
• Develop maintain statewide training materials
  and manuals

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DOAS Process Improvement Audits

• Duties and responsibilities
• Conduct periodic reviews of the programs at
  entities under the authority of SPD purchasing
• Issue reports providing an assessment of the
  program making recommendations for improvement
  when warranted
• Require policy improvements and/or place other
  restrictions on card programs in cases where it
  is determined that internal controls are not
  adequate

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Local Program Roles Responsibilities
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Card Program Administration

• Agency Procurement Officer (APO) or
  College/University Procurement Officer (CUPO)
• Serves as official liaison between entity and
  State Cards Program Manager
• Roles and responsibilities (can be delegated)
• Card Program Administrator
• Program Administration
• Program Compliance
• Set appropriate limits on program in order to
  ensure adequate review
• Develop training
• Establish procedures, monitor use
• Manage account requirements

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Card Program Administration (continued)

• Roles and responsibilities (continued)
• Supervisors/Approving Officials
• Maintain knowledge of State Purchasing Card
  Policy as well as internal policies and
  procedures
• Request p-cards for users
• Notify Program Administrator when a cardholder
  resigns, is terminated or reassigned
• Monitor transactions and card activity
• Review all documentation
• All signatures must be original signatures
  rubber stamps are prohibited

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Card Program Administration (continued)

• Roles and responsibilities (continued)
• Cardholder
• Maintain security of card and all related
  information
• Maintain knowledge of State Purchasing Card
  Policy
• Ensure all purchases are allowable under State
  and internal policies
• Ensure all purchases comply with Georgia
  Procurement Manual
• Obtain best value for State
• Maintain all required documentation
• Sign transaction log and monthly billing
  statement
• Ensure timely payment

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Internal Controls

• Each entity must have their own policy that
  ensures compliance with State laws, rules and
  policies
• Internal policies may be stricter, but can not be
  less strict than State policy
• Internal controls must include
• Separation of duties
• Weekly independent review
• Appropriate hierarchical review and approval of
  purchases
• Prevention of self-approval
• Appropriate limits on the number of cardholders
  under one supervisor
• Provision for an annual independent audit

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About the P-card
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Use of the P-card

• General Policies
• Purchases must be for official State business
• Only the employee whose name appears on the card
  is authorized to use that card
• Use of the card for personal purchases is
  strictly prohibited

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Allowed Purchases

• Can be used for small value purchases not
  otherwise prohibited or restricted
• Supplies
• Materials
• Equipment
• Services
• Must be within cardholder assigned spending
  limits
• Card Program Administrators can manage spending
  limits up to 5,000
• Transactions 5,000 for Open Market Purchases
  must receive prior written approval from State
  Cards Program Manager
• Special Approval Request Form SPD-PC003

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Allowed Purchases (continued)

• Allowable Purchases
• Equipment
• Single units under 1,000 for State Agencies,
  Commissions or Boards
• Single units under 3,000 for colleges and
  universities under the authority of the Board of
  Regents
• Supplies or materials up to the cardholders
  Single Transaction Limit (STL) and/or approved
  cycle limit
• Single purchases of supplies and materials over
  5,000 provided
• Open-Market Purchases have been competitively bid
  using eQuote, the Georgia Procurement Registry or
  other electronic solicitation tools and
• Prior, written approval is obtained from the
  local Program Administrator, the purchasers
  supervisor and the SCPM
• Use Form SPD-PC003, Purchasing Card Special
  Approval Request
• Documentation must include solicitation number
• No prior approval is needed for purchases
  exceeding 5,000 from statewide contracts, agency
  contracts, or mandatory sources
• Documentation must include reference to Statewide
  Contract or agency contract number

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Allowed Purchases (continued)

• Allowable Purchases (continued)
• Airline tickets and vehicle rentals for State
  personnel (refer to State Travel Regulations)
• For colleges, universities and technical schools
• No special approval needed for
• Food and lodging for student activities (see
  Policy for conditions)
• Food for research, laboratory animals or
  instructional use

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Prohibited Purchases

• Personal purchases of any kind
• Cash advances
• Gift Cards
• Employee travel expenses (except those listed in
  Allowed Purchases)
• Entertainment
• Alcohol
• Tobacco products
• Fuel, repair and maintenance of State-owned or
  rental vehicles (exceptions with proof of Maximo
  utilization)
• Professional services as defined by O.C.G.A.
  14-7-2(2)
• Food (except for group meals according to State
  Accounting Office Group Meal Policy and allowed
  purchases for schools)

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Emergency Purchases

• In emergencies, Program Administrators are
  allowed to obtain after-the-fact approval
• Emergencies defined as
• Cases involving welfare of the general public
• Extreme weather conditions
• Official declared emergencies
• Program Administrators must submit Form
  SPD-PC003, Special Approval Request within 72
  hours
• Must follow guidelines for emergency purchases in
  Georgia Procurement Manual
• Include Form SPD-NI005, Emergency Justification
  Form available on SPD website

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Sole Source/Sole Brand Purchases

• Guidelines found in Georgia Procurement Manual
• Any request for a Single Transaction Limit of
  5,000 or more qualifying as a Sole Source and/or
  Sole Brand must include From SPD-NI003a (Sole
  Brand Justification) or Form SPD-NI003b (Sole
  Source Justification) or both
• Forms must be attached to the transaction log
  and/or monthly billing statement

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Links Resources
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• Link to State Code (HB 1113)
• http//www.legis.ga.gov/legis/2007_08/sum/hb1113.h
  tm
• DOAS Website
• http//doas.georgia.gov/02/doas/home/0,2451,219171
  23,00.html
• State Purchasing Website
• http//statepurchasing.doas.georgia.gov/02/doas/os
  p/home/0,2469,35226973,00.html
• State Purchasing Card Policy
• http//statepurchasing.doas.georgia.gov/vgn/images
  /portal/cit_1210/9/51/116137225P-cardPolicyNews.pd
  f
• SPD Official Forms Website
• http//statepurchasing.doas.georgia.gov/00/channel
  _title/0,2094,35226973_76322813,00.html

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Questions?
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Thank you!