Department of Community Affairs

1
Department of Community Affairs

• Purchasing Card Cardholder
• Training

2
Introduction

• The objective of this training class is to
  educate the cardholders on the proper usage of
  the State Purchasing Card.
• Any questions? Please feel free to ask as we go.

3
State of Florida Purchasing Cards

• are restricted use, non-revolving credit cards
• issued to state employees
• for official state business only

4
AGENDA

• Part 1 GENERAL INFORMATION
• Part 2 TRAVELERS
• Part 3 - BUYERS

5
Part 1 General Information

• The topics that will be covered are
• The P-Card Program
• Cardholder Responsibilities
• General Information
• Approver Levels
• Forms

6
The Purchasing Card Program

• The purchasing card works like a personal credit
  card or corporate card.
• It may be presented to any merchant who accepts
  Visa.
• All your transactions (charges credits) are
  applied directly to your cost center and paid by
  the agency.

7
How does the Purchasing Card Work?

• When you use your Purchasing card, the vendor is
  paid electronically by Bank of America, usually
  within 72 hours. Bank of America then transfers
  the charge to our agency within FLAIR. (SAMAS)
• The Approval process authorizes FLAIR to create
  the appropriate disbursement transaction to repay
  Bank of America.

8
Cardholder Responsibilities

• The card is the property of Bank of America and
  the state. Only YOU, the cardholder can use the
  card.
• If the card is lost or stolen, the bank must be
  informed immediately. Be prepared to give your
  security code. Do not order a replacement card,
  notify your Purchasing Analyst, who will order
  the replacement card for you.
• You may also need to comply with financial
  disclosure requirements, if you have been
  authorized for purchases over 1,000.
• Upon notification of termination, discontinue
  using the card to allow sufficient time to turn
  in all your receipts.

9
Cardholder Responsibilities - continued

• Prior to making a purchase, remind vendor of Tax
  exempt status.
• Obtain, sign and forward receipts with a
  receiving date to approver within 3 working days.
• Identify disputed items and attempt to reach a
  resolution directly with vendor.
• If the merchant refuses to resolve the dispute,
  the Commercial Card Claims Statement of Disputed
  Item form must be completed within 60 days of
  the transaction date of the dispute and forwarded
  to the Purchasing Analyst.

10
Card Treatment Replacement

• Treat the card as you would a personal credit
  card - with care, respect and confidentiality.
• When your card is about to expire, Bank of
  America will automatically mail a replacement
  card to the Purchasing Analyst. You should
  submit your old card to the Purchasing Analyst,
  who will destroy your old card and issue the new
  one to you.

11
Charge and Credit Limits

• Each card is issued with transaction limits
• Single Purchase
• Per Day
• Per Month
• The limit is stated on the cardholder agreement
  form that you and your supervisor signed. If
  your limit needs to be changed due to changes in
  your job duties or an unexpected agency event or
  emergency, your supervisor will be required to
  send an email to the Purchasing Analyst before
  the change can be authorized.

12
Purchasing Rules

• The same purchasing rules apply when using the
  card as when using other forms of procurement.
• You are expected to know and follow appropriate
  Florida statutes, state laws, and guidelines.
• You must provide the documentation (the receipts)
  to support payment of a charge. Keep a copy of
  the receipt and submit the original to your
  reconciler.

13
Merchant Dispute

• Typically all transactions can be resolved with a
  merchant. However, you may find a merchant who
  doesnt follow the rules and correct the issue
  timely. If this happens you must complete the
  Bank of America Commercial Card Claims Statement
  of Disputed Item form within 60 days of the
  transaction date.

14
Cancelations Lost Receipts

• If a cardholder makes a reservation and the trip
  is canceled, it is the cardholders
  responsibility to cancel the reservation.
• If a receipt is lost or the cardholder cant
  obtain a receipt, the cardholder must complete
  the, Replacement Receipt form, and have the
  form signed by their supervisor.

15
Reasons for Decline

• Over allowable credit limits
• Per transaction
• Daily
• Monthly
• System cycle processes.
• Type of merchant being used.
• Card is no longer active.
• Security check with billing address.

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Level of Approvers

• Level 1 Cardholder-Approve the charges made on
  their P-Card. (Varies between travel charges and
  commodity charges.)
• Level 2 - 7 Division Approvers-The line of
  approvers assigned to a single cardholder who
  review the receipts and any supporting
  documentation.
• Level 8 General Accounting

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General Accounting The 008 Approver

• This Approver level is required and is the final
  approver.
• The General Accounting Office will
  reconcile/audit the charge to ensure proper
  financial data is used.
• Charge is approved by the General Accounting
  Office and then an EFT payment is sent to Bank of
  America by DFS.

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Forms

• Cardholder Profile Information Must be completed
  with all the required information and signatures
  before a card can be ordered.
• Cardholder Agreement Must be signed and dated
  after you have received your purchasing card
  training.

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The Purchasing Card is Flexible

• Allows each P-Card group to map out its own plan
  for using the card.
• Travel
• Buyer (Commodities and Service)
• Both (Buyer Traveler)

20
Part 2 TRAVELERS
Traveler

• The topics that will be covered are
• General information
• Prohibited P-Card purchases
• Allowable P-Card purchases
• Receipt Requirements
• Timeframes
• Required Paperwork and Forms
• Penalties for Improper Use

21
General Information
Traveler

• Intended use - Official State Business ONLY
• traveler purchasing card transactions must be in
  compliance with Section 112.061, F.S.
• Traveler may decline or accept the P-Card.
• When declined, traveler will not be eligible for
  
• travel advances or
• use of DCAs central billing accounts.

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General Information
Traveler

• Travel Voucher must be submitted to resolve any
  outstanding advances prior to receipt of your
  P-Card.
• Have you previously used DCA Central Billing
  Accounts
• . . . Alpha?
• If so, have them change your ID in their system
  to reflect that future charges will be placed on
  your P-Card.
• . . . Avis?
• If so, have them change your Wizard ID in their
  system to reflect that future charges will be
  placed on your P-Card.

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Prohibited P-Card Purchases
Traveler

• FOOD/MEALS
• TOLLS and Associated Fees
• VALET PARKING (non-mandatory)
• FUEL, except for a rental vehicle in your name
  for official state business
• Hotel charges other than room cost and mandatory
  hotel parking

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Prohibited P-Card Purchases
Traveler

• Cash advances from ATM machines
• Cash refunds for returns
• Non-business or Personal Items
• Laundry
• Internet or Telephone Charges
• Maps
• Supplies

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Allowable P-Card Purchases
Traveler

• Transportation
• Airfare Charges
• Responsibility of traveler to find the most
  economical fare possible.
• If you book your flight over the phone or
  on-line, make sure to get a print out of your
  confirmation and receipt.

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Allowable P-Card Purchases
Traveler

• Transportation
• Avis Car Rentals
• Reservations for vehicles should be made using
  the AVIS contract - Class B compact car.
• Any upgrade requires
• pre-approval from your supervisor and
• written justification when your receipt is
  submitted for processing.

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Allowable P-Card Purchases
Traveler

• Transportation
• Avis Car Rentals Fuel
• The P-Card may be used for fuel purchases only
  for Avis Car Rentals, while on official state
  business.
• The receipt for fuel purchases must show vendor
  name, price per gallon, total gallons, and total
  cost of fuel purchased.

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Allowable P-Card Purchases
Traveler

• LODGING
• Cost of the Room ONLY
• REMEMBER
• Non-mandatory charges are not allowed. . .
• Some examples non-mandatory valet parking, room
  service, phone charges, internet charges, hotel
  restaurant charges, safe charges, or movies
• must be charged to your personal card or paid
  with cash
• Request that non-mandatory charges be put on a
  separate invoice/receipt from any other charges

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Allowable P-Card Purchases
Traveler

• Parking
• Airport Parking
• Mandatory parking at hotels

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Allowable P-Card Purchases
Traveler

• Registration Fees for
• Conference/Convention
• If this charge is denied . . .
• The problem may be the vendor merchant code
• Contact the Purchasing Analyst for further
  direction
• Charges must be pre-approved
• An approved Authorization to Incur Travel
  Expenses form must be submitted with your
  receipt for processing

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Receipt Requirements
Traveler

• It is required that . . .
• Original receipts are submitted to the agency
• Every receipt must be legible in order to audit
  and process the charges.
• (Reference - Department of Financial Services -
  Reference Guide for State Expenditures,
  Purchasing Card Transactions)

32
Receipt Requirements
Traveler

• Receipt must clearly reflect . .
• description of goods or services acquired,
• number of units and cost per unit.
• When the vendor uses a statement/invoice as a
  receipt . . .
• it must provide the same info as a receipt,
• clearly indicate a 0 balance and
• reference as a VISA payment.

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Receipt Requirements
Traveler

• All receipts must be signed and dated by the
  cardholder
• per Section 215.422, F.S., to indicate the
  receipt, inspection and acceptance of the goods
  or services
• Acronyms and non-standard abbreviations for
  programs or organizational units within an agency
  should not be used in the supporting
  documentation unless an explanation is also
  included.

34
Timeframes
Traveler

• DFS and Bank of America (BOA) timeframes
• Payment is due to BOA within 10 days
• Clock starts when your card is charged
• A signed Authorization to Incur Travel Expenses
  form and the receipts must be sent to your
  Approver within three business days.
• Timely compliance at each level of the approval
  process is very important.

35
Required Paperwork and Forms
Traveler

• Monthly P-Card Reconciliation Report is submitted
  to the General Accounting Office for processing
• Original P-Card receipts for each cardholder are
  attached to this report by your approver or
  division liaison
• Purchasing card transactions must be supported by
  itemized merchant/vendor sales receipts (i.e.,
  documentation that identifies items purchased and
  amount paid for each item).
• Purchasing card transactions are post-audited by
  the Bureau of Auditing for compliance with
  applicable guidelines and disbursement rules and
  regulations

36
Required Paperwork and Forms
Traveler

• Complete the Voucher for Reimbursement of Travel
  Expenses form
• See your division liaison for assistance in
  completing this form
• Voucher for Reimbursement of Travel Expenses must
  include
• the original receipts of the allowable travel
  expenses to be reimbursed, and
• a copy of the receipts for charges made to your
  P-Card

37
Penalties for Improper Use
Traveler

• The cardholder is responsible for . . .
• proper use of the P-Card in accordance with state
  law and agency policies and procedures.
• reimbursing the state if charges are determined
  to be Unauthorized/Invalid/Prohibited
• Misuse of the P-Card may result in . . .
• suspension of the card
• possible disciplinary action

38
Penalties for Improper Use
Traveler

• If P-Card is revoked, the employee will . . .
• be responsible for paying all travel expenses out
  of pocket and
• not be eligible for advances or use of DCA
  central billing accounts.

39
The Purchasing Card has been a great success, so
do your part and lets keep it successful!
Traveler

• Questions and Answers
• Any travel questions?

40
Part 3 BUYERS
Buyer

• The topics that will be covered are
• Prohibited Charges
• Allowable Charges

41
Prohibited Charges
Buyer

• Cash advances from ATM machines
• Cash refunds for returns
• Non-business or Personal Items
• OCO (Operating Capital Outlay) Items
• Employee Moving expenses
• Gasoline petroleum products-Employees on
  official travel business may purchase fuel only
  with the P-Card when using a rental vehicle.
• Tolls
• Services 25,000 above (Including Manpower)
• Perquisites

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More Prohibited Purchases
Buyer

• Per Rule 69I-40.103, F.A.C., expenditures from
  state funds for the items listed are prohibited
  unless expressly provided by law
• (a) Congratulatory telegrams.(b) Flowers and/or
  telegraphic condolences.(c) Presentment of
  plaques for outstanding service.(d)
  Entertainment for visiting dignitaries.(e)
  Refreshments such as coffee and doughnuts.(f)
  Decorative items (globe, statues, potted plants,
  picture frames, etc).
• (h) Greeting Cards, per Section 286.27, F.S.

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Allowable ChargesBusiness-Related Purchases Only
Buyer

• BUYERS
• Purchase of Commodities
• Repairs maintenance-Not Allowed for personal
  owned or rental vehicles.
• Training registrations
• Newspaper ads
• (Personal items must never be purchased using the
  P-Card.)

44
The Purchasing Card has been a great success, so
do your part and lets keep it successful!
Buyer

• Cardholders are encouraged to
• Use Minority merchants.
• Use vendors registered in MFMP.
• Purchase commodities that are made from recycled
  materials.

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Contacts

• PURCHASING
• Tammie Kuhn
• Purchasing Analyst
• tammie.kuhn_at_dca.state.fl.us
• [phone]
• (Fax) 922-2979
• Christine Savage, Supervisor
• Budget Revenue Manager
• [phone]

• General Accounting
• Nancy Quaney
• General Accounting Manager
• nancy.quaney_at_dca.state.fl.us
• [phone]